The Cooperative Approach To Jan Aushdhi Kendras

The Jan Aushadhi Scheme envisages to ensure easy access to high quality afforble medicines for all through dedicated Jan Aushadhi Kedras. Though it was launched in 2008, the scheme was revamped as Pradhan Mantri Jan Aushadhi Yojna (PMJAY) after 2014, and further renamed as Pradhan Mantri Bhartiya JanAushadhi Pariyojna (PMBJP) IN 2016.

As per 71st round of NSSO, the expenditure on medicines accounted for 72% of out patient expenses in rural area and 68% in urban areas. Company that develops a particular drug applies for a patent and recovers the research investment by means of royalty. This accounts for the higher cost of branded medicines. Once the patent period expires, the drug can be manufactured as a generic drug with the same active ingredients at a much lower cost by any manufacturer. As per Press Information Bureau, a medicine under PMBJP is priced on the principle of a maximum of 50% of average price of top three branded medicines. Jan Aushadhi Kendras offer drugs at rates 50-90% cheaper price than branded drugs. The initial premise of the scheme required one Jan Aushadi Kendra to be opened in each district. Around 104 Kendras had opened till year 2014 and 1253 Kendras opened by year 2017. PMBJP aims to open 10,000 Jan Aushadhi Kendras by FY 23-24 and 10,500 Kendras by FY24-25.

The Pharmaceuticals & Medical Devices Bureau of India (PMBI) is the implementing agency for the scheme under the aegis of Department of Pharmaceuticals. PMBJP operates through parallel rate contracts with multiple vendors & suppliers, SAP based Inventory Management & Forecasting System, four warehousing facilities across India , Quality Assurance system in 16 NABL accredited laboratories to provide a product basket of more than 1800 medicines and 285 surgical equipments.

After formation of Ministry of Cooperation in 2021, various initiatives have been undertaken to strengthen the cooperative movement in India under the Sahkar se Samriddhi Paradigm. With adoption of model bye laws by Primary Agriculture Credit Societies(PACS), efforts have been made to improve viability of PACS and diversify into 25 business activities including dairy, fishery, floriculture, setting up godowns, procurement of foodgrains, fertilizers, seeds, custom hiring centers, LPG/CNG/Petrol/Diesel distributorship, community irrigation, short-term & long-term credit, Fair Price Shops (FPS), Business Correspondent activities, Common Service Centre, etc. The state of Uttar Pradesh has been a front runner in embracing the Sahkar se Samridhhi paradigm with more than 5200 PACS working as common service centres, more than 1400 PACS have entered into MOUs with Farmer Producer Organisation (FPOs) etc. The newest feather on the cap is PACS setting up Pradhan Mantri Bhartiya Jan Aushadhi Kendras.

PMBJP stipulates that individuals with B Pharma/ D Pharma or any organization or NGO/trust/institution/public health society employing such an individual are eligible for opening Jan Aushadhi Kendras. The government has allowed 2000 Primary Agricultural Credit Societies (PACS) to open Jan Aushadhi Kendras across the country in FY 2023.

PACS need to identify shop space and a B pharma/ D pharma pharmacist with drug license. PACS are free to setup shop in their own space or take up an attractive shop space on rent supported by a proper agreement with owner, minimum area requirement being 120 square feet. PACS are required to apply on the Jan Aushadhi Kendra portal with necessary documents viz Pan details, Aadhar, six months bank transaction details, two years of ITR details, etc and a fee of INR 5000. After due examination, initial approval in principle is given to the PACS which is valid for a period of 45 days. On receiving initial approval, PACS need to apply for drug license. Once drug license etc of pharmacist is uploaded, a store code is allotted by PMBI. POS software is to be downloaded on system after proper training, order for supply of drugs is placed and received using POS software. An incentive scheme upto INR 5lakhs at the rate of 15% of monthly purchase by the Kendra subject to a ceiling of INR 15,000 per month has been put in place by Pharmaceuticals & Medical Devices Bureau of India (PMBI). Also initial financial assistance to the tune of INR 2 lakhs is provided for IT and infrastructure .PACS receive a margin of 20% on MRP of each drug.

As of date, the multipurpose PACS in the state of Uttar Pradesh have embraced the PMBJP scheme with zeal and 1000 plus cooperative societies have applied for the Kendras within the state. Given the large number of states that applied, initial approval was given to 464 PACS, 300 PACS received drug licenses and 167 PACS were given store code by PMBI while process is still ongoing to allot store codes to the remaining. 100 PACS have downloaded the POS software and placed order for supply of medicines while 36 stores are functional. The turnover of these PACS based Jan Aushadhi Kendras range between Rs 50,000 to Rs 10000 till date with an average turnover of Rs 5000 per month.

The Jan Aushadhi scheme was a breakthrough intervention launched in 2008. However, it lost much steam due to problems like lesser number of Jan Aushadhi Kendras compared to community pharmacies, poor awareness, less patient load,no pharmaceutical care provided and delayed supply of medicines. Pradhan Mantri Jan Aushadhi Kendras powered by PACS provide a unique advantage of registering presence in distant rural markets across the length and breadth of state. They are serving as a source of income for the PACS and ensuring awareness as well as access to high quality generic medicines at cheap rates for the poor and needy in the rural areas. PACS Jan Aushadhi Kendras have the advantage of a dedicated customer/patient base in its members. Presence of pharmacists in these Kendras enables provision of pharmaceutical care to the patient as well.

The Jan Aushadhi Sugam Mobile application developed by PMBI is a citizen centric welcome initiative as it allows users to search Jan Aushadhi stores nearby (via GPS location) and availability of generic medicines by entering the common brand names of these medicines. Given the presence of PACS Jan Aushadhi Kendras in the rural hinterlands, this mobile application has allowed dissemination of information and access to cheap medicines in these hinterlands.

However, the initial enthusiasm of PACS must be coupled with smooth execution of the scheme. Demand Supply Gap is a burning issue with regard to the scheme. Popular medicines run out of stock soon. Also the delay in release of incentives and payments is demotivating for the stakeholders. The pharma vendors operating under the PMBJP scheme are supposed to receive payments within a period of 60 days, delay in payments often dent their margins, further adding to delay in supply of medicines.

Sahkar se Samriddhi Paradigm has provided the much needed vigor to the Primary Agricultural Credit society . The PACS Pradhan Mantri Jan Aushadhi Kendras presents a win- win bargain for the PACS as well as serves the very objective of the Pradhan Mantri Jan Aushadhi Scheme. The effective implementation and sustenance of the scheme would entail constant coordination between the Department of Cooperative and the Pharmaceuticals & Medical Devices Bureau of India (PMBI) to ensure PACS are provided much needed hand-holding in placing timely orders, supply of medicines without delay and disbursement of incentives. If the initial hiccups are taken care of, definitely PACS powered Jan Aushadhi kendras could serve as the most effective sustainable model to provide quality medicines at affordable prices to all!