Bureau Report | Bengaluru, Karnataka, Bharat (India)

Bengaluru, Feb 17: In a significant pre-budget development, the Karnataka Pharma Retailers & Distributors Organization (KPRDO) has formally submitted a set of demands to Chief Minister Siddaramaiah, seeking targeted welfare schemes and policy interventions for the state’s pharmaceutical fraternity in the upcoming 2026-27 financial year.

Simultaneously, the state’s Commercial Tax department has invited the organization to a high-level pre-budget discussion, scheduled to be chaired by the Chief Minister on February 16 in Vidhana Soudha.

In a representation dated 2025-26 (KPRDO/CM-GOK/257/2025-26), the KPRDO, which claims to represent over 45,000 retailers and distributors alongside 80,000 registered pharmacists, highlighted the growing economic pressures on “traditional standalone pharmacies.”

Key Demands for the 2026-27 Budget

The organization’s memorandum to the Chief Minister outlines five primary requests aimed at sustaining the traditional pharma trade, which it describes as the “backbone of primary healthcare” in rural and underserved areas.

1. Financial Support and Incentives:
The KPRDO has requested capital subsidies, low-interest loans, and performance-linked grants for small and medium-scale chemist shops. They argue this will ensure an uninterrupted medicine supply chain and help shops cope with rising operational costs, including high rents and staff salaries.

2. Welfare Schemes for Pharmacists:
A dedicated “Pharmacist Welfare Fund” has been proposed to introduce financial benefit schemes for chemists and pharmacy workers. The organization states this would enhance job security and social security for professionals in the field.

3. Ban on Online Medicine Sales:
One of the most strongly worded demands is a request for the state government to ban the online sale of medicines through e-commerce platforms. The KPRDO alleges that unauthorized online portals and quick-delivery apps are selling life-saving medicines through misleading advertisements and abnormal discounts. They further claim this practice leads to a “significant loss of GST revenue” for the state government due to cross-state purchasing and sales to unregistered entities.

4. Professional Recognition and Integration:
The organization has urged the government to officially recognize pharmacists as “essential healthcare providers.” They have proposed state-sponsored Continuous Professional Development (CPD) programs and skill training in areas like chronic disease counseling and vaccination awareness. They also acknowledged a joint initiative with the FDA and Karnataka State Pharmacy Council (KSPC) to honor outstanding pharmacists on World Pharmacists Day.

5. Scrutiny of Trade Licenses and Taxation:
The KPRDO has raised concerns over what it terms “multi-point taxation.” They argue that pharmacy owners pay periodic retention fees to the FDA along with annual professional taxes, creating a complex financial burden. They have requested a review of these overlapping charges to improve the “ease of doing business.”

Alliance Partner FITIG Extends Support

In a related development, the KPRDO’s concerns over online pharmaceutical sales have received backing from their alliance partner, the Federation of International Trade Investor Gunodaya Association (FITIG). The association, which has been actively raising issues related to e-commerce tax compliance, has thrown its weight behind the KPRDO’s demand to regulate online medicine sales .

FITIG Association recently drew attention to similar concerns at the national level when it issued a press statement highlighting alleged GST evasion by major e-commerce platforms through billing malpractices . The association had flagged complaints regarding the reclassification of marketplace fees as transport charges to claim lower GST rates, a practice that mirrors the KPRDO’s concerns about revenue loss to the state exchequer through unauthorized online medicine sales .

Sources indicate that the alliance between the two organizations strengthens the collective voice of traditional trade bodies seeking regulatory intervention against what they describe as unfair competition from digital platforms. Both organizations maintain that unchecked e-commerce operations not only pose public health risks but also result in significant tax revenue leakage for state and central governments.

Government Engagement

In a related development, the Office of the Commissioner of Commercial Taxes has issued a meeting notice (No. KGST/CR.125/2025-26) on February 13, 2026, addressed to KPRDO President C. Jayaram. The notice confirms a pre-budget discussion on the afternoon of February 16, 2026, at the Conference Hall in Vidhana Soudha, to be presided over by the Chief Minister.

The letter was signed by C. Jayaram, President of KPRDO, who expressed the community’s hopes for a favorable outcome. “Entire Pharma fraternity is waiting for your positive ray of action,” the representation stated.

Copies of the memorandum have also been marked to Chief Secretary Dr. Shalini Rajneesh, Health Minister Dinesh Gundu Rao, and senior officials from the Health Department and Food and Drug Administration (FDA).

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