What margins are allowed to a Wholesaler and a Retailer as per DPCO, 1995?
Ans. For scheduled (controlled) drugs the margin is fixed at 16% as per para 19 of the DPCO, 1995 which is reproduced below : “A Manufacturer, distributor or wholesaler shall sell a formulation to a retailer, unless otherwise permitted under the provisions of this order or any order made thereunder, at a price equal to the retail price, as specified by an order or notified by the Government, (excluding excise duty, if any) minus sixteen per cent thereof in the case of Scheduled drugs”. “Notwithstanding anything contained in sub-paragraph (1), the Government may by a general or special order fix, in public interest, the price of formulations sold to the wholesaler or retailer in respect of any formulation the price of which has been fixed or revised under this Order”. For non-scheduled formulations the companies are at liberty to decide the margin. However, it is reported by the industry that the prevailing normal trade margin in respect of some decontrolled formulations is 20% for reta
• “A Manufacturer, distributor or wholesaler shall sell a formulation to a retailer, unless otherwise permitted under the provisions of this order or any order made thereunder, at a price equal to the retail price, as specified by an order or notified by the Government, (excluding excise duty, if any) minus sixteen per cent thereof in the case of Scheduled drugs”. • “Notwithstanding anything contained in sub-paragraph (1), the Government may by a general or special order fix, in public interest, the price of formulations sold to the wholesaler or retailer in respect of any formulation the price of which has been fixed or revised under this Order”. For non-scheduled formulations the companies are at liberty to decide the margin. However, it is reported by the industry that the prevailing normal trade margin in respect of some decontrolled formulations is 20% for retailers and 10% for wholesalers.
