AIOCD Challenges Proposal to Grant Drug Licenses to Agricultural Societies

The pharmaceutical distribution landscape in India is facing a significant regulatory tug-of-war as the All India Organisation of Chemists and Druggists (AIOCD) mounts a vigorous defense against the inclusion of Primary Agricultural Credit Societies (PACS) in the medicine retail chain. The AIOCD, which represents over 1.2 million chemists and druggists across the country, contends that the proposal to grant drug licenses to these village-level cooperative institutions is a fundamental 'compromise on public health' that ignores the complexities of pharmaceutical management.

At the heart of the dispute is the specialized nature of drug storage and dispensing. Under the Drugs and Cosmetics Act of 1940 and the subsequent Rules of 1945, the sale of medicines in India is strictly regulated, requiring the presence of a registered pharmacist and adherence to specific storage conditions, including temperature and humidity controls. AIOCD argues that PACS, which are primarily designed to provide short-term credit and agricultural inputs to farmers, lack the technical infrastructure and professional expertise to handle life-saving medications. The trade body emphasizes that improper storage can lead to the degradation of drug efficacy, potentially turning essential medicines into ineffective or even toxic substances.

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Currently, there are approximately 63,000 functional PACS across India, reaching the most remote corners of the agrarian economy.

This move by the government is widely seen as an attempt to leverage the deep rural penetration of the PACS network to improve healthcare accessibility in 'last-mile' areas. Currently, there are approximately 63,000 functional PACS across India, reaching the most remote corners of the agrarian economy. By transforming these societies into multi-service entities that include pharmacies, the government hopes to bridge the gap in rural healthcare infrastructure. However, AIOCD views this as an existential threat to the established retail pharmacy sector and a dilution of the professional standards required to operate a pharmacy.

Historically, AIOCD has been a powerful lobbying force, often clashing with the government over the rise of e-pharmacies and the expansion of the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) stores. Their opposition to PACS follows a similar logic: that the 'commoditization' of medicine distribution through non-traditional channels bypasses the safety checks provided by traditional brick-and-mortar pharmacies. The organization has signaled that it will utilize its massive nationwide network to protest the move, potentially leading to supply chain disruptions if a resolution is not reached.