Last Updated:
The data shows that in the last four years, starting from 2021-22 till 2024-25, over 6,000 show cause notices were issued, and more than 1,300 kendras have been closed
Jan Aushadhi Kendras, or JAKs, are pharmacy outlets under the PMBJP scheme selling generic drugs at almost half the price of the branded drugs. (File pic/X)
A parliamentary panel has raised concerns over persistent malpractices and rising closures of Jan Aushadhi Kendras under the central government’s flagship affordable generic drugs scheme, Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).
Jan Aushadhi Kendras, or JAKs, are pharmacy outlets under the scheme selling generic drugs at almost half the price of the branded drugs. In some cases, the prices of medicines at these outlets are even 70 to 80 per cent lower than their branded versions.
Recommended Stories
What committee found
According to the eleventh report of the standing committee on chemicals and fertilisers, the department should look at stronger monitoring mechanisms and expansion of the product basket to include life-saving drugs at the pharmacy shops. The data shows, in the last four years, starting from 2021-22 till 2024-25, over 6,000 show cause notices were issued, and more than 1,300 kendras have been closed.
The panel expressed concern over the alarming upward trend in violations.
In its report, seen by News18, the panel noted, “The Committee are happy to note that about 42 marketing officers of PMBI are stated to have been deputed in different States/UTs to handle complaints of malpractice.”
PMBI stands for Pharmaceutical and Medical Devices Bureau of India—a department responsible for the execution of the scheme on the ground under the department of pharmaceuticals, ministry of chemicals and fertilisers.
The report added, “Admittedly, show cause notices are also issued for violating Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) norms resulting in a warning or cancellation in case of any confirmed malpractices.”
The department of pharmaceuticals, in its action taken replies, submitted that over 1,200, 1,500, and 1,800 show cause notices were issued, respectively, in 2022-23, 2023-24, and 2024-25, directing compliance with norms. In cases of repeated violations, the allocation of kendras was cancelled or incentives withheld.
“The Committee observe that the issuance of Show Cause Notices to Jan Aushadhi Kendras (JAKs) has shown an alarming upward trend over the past few years, with a total of 6,011 notices issued from the year 2021-22 to the year 2024-25. This escalation in notices correlates with the significant number of JAK closures, which too has risen to 267 (in 2024-25) from 191 in the year 2021-2022,” said the report.
The committee wrote that it is “concerned” about the increasing number of both show cause notices and store closures, which indicates “persistent malpractices and need for stringent check of PMBJP norms”. It, in fact, has recommended that “a more robust and effective monitoring system for JAK network be put in place so as to obviate scope for such malpractices.”
‘Drug basket should be expanded’
The panel also flagged gaps in the availability of essential medicines at Jan Aushadhi outlets.
It has highlighted that important medicines/injections like benzylpenicillin, atropine, and streptomycin, used for the treatment of tuberculosis and mental ailments, are not available at kendras, and only atropine sulphate injection is procured as per demand and supplied to selected kendras.
However, in the action taken replies, the department of pharmaceuticals said that PMBI would continue reviewing its product basket. It explained that benzylpenicillin was earlier available but discontinued due to “low demand and poor sales”, while anti-tuberculosis medicines were deliberately excluded as they are supplied free of cost under the government’s TB Mukt Bharat Abhiyan, launched in 2021. The department added that a survey of more than 100 kendras had reaffirmed that there was little demand for TB drugs in Jan Aushadhi outlets because of the free government supply. It further informed the panel that more than 278 medicines for mental illnesses are already available under PMBJP, and more could be added based on demand.
Despite these explanations, the committee pressed for a rethink. “The committee had desired that the department should make efforts towards requisite augmentation of JAKs so that they become a one stop place for all kinds of medicines for the common people by bringing the life saving drugs for TB or Mental illness… Keeping in view the importance of the medicines the Committee desire that the decision to discontinue procurement due to low demand may be reviewed from time to time,” the report said.
The government launched the scheme to provide quality generic medicines at affordable prices for all. Over the past 11 years, the scheme PMBJP has led to estimated savings of about Rs 38,000 crore for citizens compared to the cost of branded drugs. According to the press release issued by the ministry of chemicals and fertilisers in July, the initiative has played a key role in reducing households’ out-of-pocket spending on health, which fell sharply from 62.6% of total health expenditure in 2014-15 to 39.4% in 2021-22.
About the Author
Himani Chandna, Associate Editor at CNN News18, specialises in healthcare and pharmaceuticals. With firsthand insights into India’s COVID-19 battle, she brings a seasoned perspective. She is particularly pass…Read More
Himani Chandna, Associate Editor at CNN News18, specialises in healthcare and pharmaceuticals. With firsthand insights into India’s COVID-19 battle, she brings a seasoned perspective. She is particularly pass… Read More
Loading comments…
Read More
