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What is the story about?
The All India Organisation of Chemists and Druggists (AIOCD) has called for a nationwide shutdown of chemist shops and pharmaceutical distributors on May 20, intensifying its opposition to online pharmacies and aggressive discounting practices by large corporate-backed players.
The organisation, which claims to represent over 12.40 lakh chemists and drug distributors across India, said the protest aims to draw the government’s attention to what it described as the “unregulated functioning” of e-pharmacies and the growing threat to the survival of small medicine retailers.
In a memorandum submitted to Prime Minister Narendra Modi, AIOCD alleged that despite repeated representations, no concrete action has been taken on key concerns impacting the pharmaceutical trade and public health ecosystem.
The proposed one-day shutdown could disrupt retail medicine supply chains across several states, particularly in smaller towns and semi-urban regions where neighbourhood chemists remain the primary source of access to medicines.
E-pharmacies under scanner
At the centre of the dispute is the growing influence of online pharmacy platforms, which traditional chemists argue are operating in a regulatory grey area.
AIOCD alleged that digital platforms are taking advantage of relaxations under notification G.S.R. 817(E), enabling the sale of medicines without adequate physical verification of prescriptions.
The association claimed this has led to repeated use of prescriptions, misuse of antibiotics and unrestricted availability of habit-forming drugs. It also flagged concerns around AI-generated fake prescriptions, warning that such practices could worsen antimicrobial resistance (AMR), an issue already under close scrutiny by global public health agencies.
The organisation further demanded the withdrawal of G.S.R. 220(E), a temporary notification issued on March 26, 2020 during the COVID-19 pandemic to ease access to medicines amid lockdown restrictions.
According to AIOCD, continuation of the emergency-era provision has weakened safeguards under Drug Rule 65 and enabled digital medicine platforms to bypass traditional compliance mechanisms governing prescription drug sales.
Battle over deep discounting
The shutdown call also reflects rising tensions between traditional pharmacy retailers and organised or online pharmacy chains over pricing practices.
AIOCD alleged that deep discounting by corporate-backed entities is distorting the market and eroding the viability of small chemists, despite regulated margins on essential medicines under the Drug Price Control Order (DPCO) and National Pharmaceutical Pricing Authority (NPPA) framework.
Also Read: Delhi Crime Branch busts ₹6 crore fake medicine racket; counterfeit vaccines, insulin and cancer drugs seized
The association argued that prolonged price wars could eventually force the closure of independent medicine stores, particularly in rural and semi-urban areas where operating margins are already thin.
Industry observers say the standoff underscores the broader conflict between digital healthcare platforms seeking scale and legacy pharmacy networks that continue to dominate medicine retailing in India. India’s pharmacy retail market remains heavily fragmented, with lakhs of standalone chemist shops accounting for a significant share of medicine distribution, especially outside metropolitan cities.
Threat of indefinite agitation
AIOCD warned that if the government does not address its demands before May 20, the protest could escalate into an indefinite agitation.
In a joint statement, AIOCD President J. S. Shinde and General Secretary Rajiv Singhal said the issue extends beyond trade concerns.
“This is not merely a matter of trade, but of patient safety,” the office bearers said, adding that the organisation would intensify its protests if no corrective measures are announced.
Among its key demands, AIOCD has sought the immediate withdrawal of G.S.R. 220(E), scrapping of the e-pharmacy-related notification G.S.R. 817(E), and the introduction of a “level playing field” policy to curb predatory pricing practices in the sector.
The organisation, which claims to represent over 12.40 lakh chemists and drug distributors across India, said the protest aims to draw the government’s attention to what it described as the “unregulated functioning” of e-pharmacies and the growing threat to the survival of small medicine retailers.
In a memorandum submitted to Prime Minister Narendra Modi, AIOCD alleged that despite repeated representations, no concrete action has been taken on key concerns impacting the pharmaceutical trade and public health ecosystem.
The proposed one-day shutdown could disrupt retail medicine supply chains across several states, particularly in smaller towns and semi-urban regions where neighbourhood chemists remain the primary source of access to medicines.
E-pharmacies under scanner
At the centre of the dispute is the growing influence of online pharmacy platforms, which traditional chemists argue are operating in a regulatory grey area.
AIOCD alleged that digital platforms are taking advantage of relaxations under notification G.S.R. 817(E), enabling the sale of medicines without adequate physical verification of prescriptions.
The association claimed this has led to repeated use of prescriptions, misuse of antibiotics and unrestricted availability of habit-forming drugs. It also flagged concerns around AI-generated fake prescriptions, warning that such practices could worsen antimicrobial resistance (AMR), an issue already under close scrutiny by global public health agencies.
The organisation further demanded the withdrawal of G.S.R. 220(E), a temporary notification issued on March 26, 2020 during the COVID-19 pandemic to ease access to medicines amid lockdown restrictions.
According to AIOCD, continuation of the emergency-era provision has weakened safeguards under Drug Rule 65 and enabled digital medicine platforms to bypass traditional compliance mechanisms governing prescription drug sales.
Battle over deep discounting
The shutdown call also reflects rising tensions between traditional pharmacy retailers and organised or online pharmacy chains over pricing practices.
AIOCD alleged that deep discounting by corporate-backed entities is distorting the market and eroding the viability of small chemists, despite regulated margins on essential medicines under the Drug Price Control Order (DPCO) and National Pharmaceutical Pricing Authority (NPPA) framework.
Also Read: Delhi Crime Branch busts ₹6 crore fake medicine racket; counterfeit vaccines, insulin and cancer drugs seized
The association argued that prolonged price wars could eventually force the closure of independent medicine stores, particularly in rural and semi-urban areas where operating margins are already thin.
Industry observers say the standoff underscores the broader conflict between digital healthcare platforms seeking scale and legacy pharmacy networks that continue to dominate medicine retailing in India. India’s pharmacy retail market remains heavily fragmented, with lakhs of standalone chemist shops accounting for a significant share of medicine distribution, especially outside metropolitan cities.
Threat of indefinite agitation
AIOCD warned that if the government does not address its demands before May 20, the protest could escalate into an indefinite agitation.
In a joint statement, AIOCD President J. S. Shinde and General Secretary Rajiv Singhal said the issue extends beyond trade concerns.
“This is not merely a matter of trade, but of patient safety,” the office bearers said, adding that the organisation would intensify its protests if no corrective measures are announced.
Among its key demands, AIOCD has sought the immediate withdrawal of G.S.R. 220(E), scrapping of the e-pharmacy-related notification G.S.R. 817(E), and the introduction of a “level playing field” policy to curb predatory pricing practices in the sector.
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