Bhubaneswar: The Pradhan Mantri Bharatiya Jan Aushadi Kendras (PMBJAKs) in Odisha have grown by leaps and bounds. The scheme launched in 2008 could see the people medicine centres (PMCs) in only 19 of the 30 districts in the State till 2015.
As the scheme was revamped in the year 2015 by the Modi govt with the opening of Jan Aushadi Kendras to the private pharmacists, the PMJAKs have seemingly mushroomed in the State. From a handful of such centres, the scenario today shows sprouting up of such PMCs in every locality across the State.
The data available shows that from a mere 25 such PMCs in the State in the year 2016, the count now stands at a massive 680. The PMJAKs have skyrocketed by a humungous over 2730% in the last 8-year period.
Now, the PMBJAKs are spread across the 30 districts in the State. From a single PMC at district headquarter hospitals till 2016, the scenario has witness a sea change – except for Gajapati and Malkangiri, each district has multiple PMBJAKs.
DISTRICT FOOT PRINT
A glance at the data available shows Cuttack district tops the list with a high of 99 PMBJAKs. It is followed by Khordha district. The 10-list is given below.
- Khordha – 42
- Ganjam – 39
- Balasore – 30
- Jajpur – 24
- Jagatsinghpur – 23
- Bhadrak – 13
- Puri – 12
- Kendrapada – 12
- Keonjhar – 12
- Mayurbhanj - 12
A glance at the top-10 districts reveals that the rate of proliferation of the PMBJAKs has been high in the coastal districts, though there is much scope for growth in the coastal districts, as Ganjam the largest district has only 39 PMBJAKs, which highlights the limited accessibility to the people.
Moreover, in tribal dominated and aspirational districts the count of PMBJAKs has been poor in the State. See the list below.
- Sundargarh – 5
- Kandhamal – 1
- Kalahandi – 1
- Gajapati – 1
- Malkangiri - 1
CURRENT INCENTIVES TO PMJAK OPERATORS
As per the Department of Pharmaceuticals, incentive under the scheme is being provided as follows:
- Normal Incentive: The Kendras run by all entrepreneurs that are linked with PMBI through software are eligible for incentive @ 20% of monthly purchases made, up to ₹20,000 per month subject to certain conditions such as maintenance of stock of specified medicines.
- Additional Incentive: - One-time additional incentive of Rs 2.00 lakh (in the form of support for furniture and fixtures etc.) is provided to the Jan Aushadhi Kendras opened in North-Eastern States, Himalayan areas, Island territories and aspirational districts as defined by NITI Aayog or opened by women entrepreneurs, ex-servicemen, divyangjan and person belongs to Scheduled Caste and Scheduled Tribes.
Despite additional incentive of Rs 2 lakh, the poor show in aspirational districts in the State need to be pondered over.
DEMAND FOR PMJAK MEDICINES IN ODISHA
According to a study published in the Asia-Pacific Journal of Health Management, since the medicines available in the PMBJAKs are the lowest priced drug available in the market, the demand has been good.
The study has on PMBJAK in Odisha has been undertaken by University of Hyderabad and School of Public Health, AIPH University, Bhubaneswar.
The study has noted the following.
“Currently, the PMC business is performing best. It is efficient in delivering affordable medicines to the masses [5]. However, low-priced PMC products require the selling of higher volumes to earn sufficient income to compensate staff, pay rent, and meet other expenditures.”
The above inference of the Study shows there is a need for more higher volume growth.
An awareness drive at the public hospital level could result in higher sale volume for drugs sold in the PMJAKs.
SELF EMPLOYMENT SCHEME PMJAK CHALLENGES
The study done by University of Hyderabad and AIPH University, Bhubaneswar, has identified the following challenges the scheme facing in the State.
Analyzing on the business model of the PMBJAK in the State of Odisha, the study said the following.
The business model of PMBJAK at present has been as follows.
- There was a two percent extra margin on the product’s maximum retail price (MRP)
- Along with the twenty percent profit margin to cope with the losses incurred due to expired stocks
The study says a survey has highlighted the common challenge before PMCs operators in the State has been – Stocks that have expired.
The study survey finds that 20% profit margin to cope with the losses incurred due to expired stocks seems insufficient when a PMC operator keeps support staff or where rent charges are high.
The study noted:
“Compensation for the support staff at the PMCs is not regulated in the scheme. Owing to all dependency on the twenty percent MRP margin, PMC owners find it difficult to compensate the supporting staff appropriately. Rent and manpower are the major expenditure heads for a PMC owner.”
The study further noted:
“Some PMC owners suggested that the scheme can introduce a provision to support either of the expenditure heads to ensure the sustenance of the PMCs.”
Significantly, as the study has highlighted on the significant factor such as sustenance, here the State government can chip in to provide some incentives to ensure sustenance of PMBJAKs and help its penetration into rural areas and tribalaspirational districts.
