COVID-19: Keeping up with the supply chain

Under the aegis of Ministry of Consumer Affairs, Food and Public Distribution, the Department of Consumer Affairs had issued an order to regulate the production, quality, distribution, logistics of masks (2 ply and 3 ply surgical masks, N95 masks) and hand sanitisers for #Covid-19 management. The Central Government has conferred to the sub-section (2) of section 2A, of the Essential Commodities Act, 1955 (10 of 1955), and issued an order, which may be called the Essential Commodities Order, 2020 which will remain in force for a period up to June 30th, 2020 from the issuing date of 13th March 2020.

This move is a result of the rise in demand for these products in the Indian market. The coronavirus threat escalated in India in March 2020 with the first two cases being registered in Bangalore and Delhi. Now the virus has spread all over India with total confirmed cases of over 900 which includes over 20 deaths in the country.

Due to Coronavirus, there is a rise in the demand of certain products like hand sanitizer, masks, gloves etc, and some parts of the Indian market are already facing the scarcity of these products, due to increasing demand. To ensure the product availability in the market, the notification has already brought these products under the Essential Commodities Order, 2020.
Besides this, the government has taken much-needed steps to stop the community transmission of coronavirus, and PM Modi has put the entire nation under lockdown.

In such a pandemic situation, ensuring that the supply chain remains active and fulfils all requirements is a challenging task for all the stakeholders and state governments to ensure the availability of these products. Across the country, the state Food and Drug Administration authorities have fastened up the licensing process of these products, whereas, the stakeholders are working 24X7 to ensure medicines available for all therapies along with mask, hand sanitiser, gloves etc. The industry stakeholder shares insight on strengthening the supply chain.

Sandip Chhettri, COO, TradeIndia.com:
The core idea behind India’s Essential Commodities Act is to ensure the delivery of those essential products —such as foodstuff, drugs, fuel, etc. — the supply of which is obstructed by unethical business practices like hoarding and black-marketing. But ‘essentiality’ is a subjective concept, and at this time of the ongoing pandemic of COVID-19, masks and hand sanitizers have suddenly become more essential than anything else, here as well as globally. So, this is a timely decision by our government. The move will benefit consumers, ensuring the supply of genuine products at the right price. No doubt, producers will require some more time to meet the sudden spurt of demand of these products, particularly in certain pockets, but the solution is not far off. Demands must be met, but by genuine products at the right price. We must protect customers from the evil of unethical price rise, hoarding and black-marketing.

Genuine manufacturers will also benefit as the move will discourage counterfeiting. News reports abound these days suggesting that victims across the globe have lost millions of dollars in hands of frauds involving masks and sanitizers. Also, with the Corona-virus now present in 100 countries, some countries are stockpiling while some others have already banned exports of these products altogether. Our government must keep a close eye on this situation, and if required, may need to intervene to support domestic manufacturers and suppliers of these products, which are now essential than ever before.

The whole pharma industry is in one way or another connected to China. The pharma companies should track their inventory more often and should switch to diversified sources for procurement of raw materials, apart from China. And the Pharma companies should consider pushing forward with a long-stalled plan to make more drug ingredients domestically and reduce the country’s reliance on Chinese suppliers.

Vivek Tiwari, Founder, and CEO, Medikabazaar
We at Medikabaazar, understand the fact that there might be situations like this when there will be high demands of particular products to counter specific diseases. With our connections with suppliers, warehouses in different parts of the country and our last mile delivery systems, we are ready to cater to varying demands of products at any time.

Arushi Jain, Executive Director, Stayhappi
The APIs used in antibiotics, vitamins and other essential medicines, are heavily sourced from China. These APIs are paracetamol, aspirin, azithromycin, amoxicillin, ofloxacin, metronidazole; vitamins such as B12, B1, B6, and E; female hormone progesterone; HIV drugs lopinavir and ritonavir; and blood pressure-controlling drug valsartan. The government has been examining the impact of the shutdown in China on the pharma sector in India including possible shortages of molecules and planning measures that can be taken to keep the situation under control. Medication shortages come with a considerable cost to pharmaceutical companies. It leads to loss of revenue, provider loyalty, and brand reputation pose significant and deleterious threats to the business. It must be noted that whenever there is a shortage of medication, the patient’s quality of life is at risk. Keeping this in mind, We have also increased our inventory.

Targeted assessment of pharma products should be kept in mind. As a long-term measure, to attain self-sufficiency in bulk drugs and reduce dependence on China, the government should plan ways to encourage domestic manufacturing of APIs by creating a suitable ecosystem in the country with a focus on fiscal and procedural support to pharma companies to kickstart production of intermediates. Various government organisations have been instructed to ensure an adequate supply of APIs and check black-marketing or illegal hoarding. The organisations have also been asked to monitor the availability of APIs and drugs.

With reports of coronavirus cases being reported from many parts of India, people are rushing to medical stores to get their hands on either N95 or a simple surgical face mask, and sanitizers but they have been hamstrung by their massive shortage. According to a media reports, prices of face masks have shot up 300 percent. A box of face masks which earlier was available for Rs 1.50 is now getting sold at Rs 6. The prices of masks etc are higher as India does not manufacture these masks but only assembles it. Also, the 3 ply material is mainly imported from China. The shortage is largely due to supply disruptions in China coupled with a large amount of buying from the Middle East and China.

As a long-term measure, to attain self-sufficiency in bulk drugs and reduce dependence on China, the government is planning ways to encourage domestic manufacturing of APIs by creating a suitable ecosystem in the country with a focus on fiscal and procedural support to pharma companies to kickstart production of intermediates.

Aditya Vazirani, CEO- Robinsons Global Logistics Solutions
Hand sanitisers and masks are vital in the front line defense and prevention against the Covid-19 pandemic that has literally brought the entire world to a lockdown. With 195 cases in India and rising, these products have been in heavy demand and thus were being hoarded and sold at exorbitant prices. The central government’s move to bring these two essential items under the ‘essential commodities act 2020’, along with the other list of essential food and supplies, is a welcome move. It will help ensure an adequate supply of the vital medical products, including masks and sanitizers at a reasonable price, and will also help arrest black market trading, hoarding and the manufacturing of inferior quality products. Further, the move by the Director-General of Foreign Trade (DGFT) to completely ban the export of masks, along with all the raw materials, with immediate effect, will ensure our manufacturing processes will be equipped to meet the rising demand. These regulatory initiatives showcase the government’s prompt action and preparedness to tackle the massive health crisis.

While the logistics and supply chain network are currently undergoing immense pressure to ensure an adequate and consistent supply of food, medicines, and other essentials, it is also marred with challenges like lack of labour, inconsistent supply, hoarding of goods in warehouses, and the loss of revenue due to restricted import/ export activities.

As a logistics and warehousing entrepreneur, I am happy with the government’s move which will be instrumental in providing a transparent, organised, and structured value chain for these vital medical products along with daily essentials.

Goutam Dutta, General Manager – AN Pharmacia Laboratories
In view of the evolving situation on the spread of novel coronavirus (COVID-19) and recent declaration by WHO for Covid-19 as a global pandemic, in a bid to curb the spread of corona virus the Ministry of Consumer Affairs, Food and Public Distribution, on dated 13th march 2020 issued a notification(via F.No. 25(1)l2A2OECR& E,) to regulate the production, quality, distribution and logistics of masks (2ply & 3ply surgical masks, N95 masks) & hand sanitizers under Essential Commodities Order, 2020 up to 30th June, 2020 to ensure prevention of black marketing and profiteering of these items for public interests.

In light of the public health emergency posed by COVID-19, these measures are a step in the right direction, they need to be implemented urgently in right spirit and proactively by manufactures/suppliers/distributors to ensure the increase in production their capacity without compromising quality and further ease in distribution to move materials in a timely and efficient manner so as to deliver benefits for Pan India. At the same time, the need of the hour is the involvement of the relevant professionals (procurement, technical, quality, environment, health and safety, distribution and logistics etc.) while making sure that adequate and appropriate controls are in place and faster response time achieved to ensure uninterrupted availability of 2ply & 3ply surgical masks, N95 masks & hand sanitisers at an affordable price to protect health systems at all hospitals, doctors, nurses,other frontline health workers and the public at large to protect from the novel coronavirus.

Further to above, the CDSCO and NPPA is expected to take suitable measures to monitor regulatory aspect in expediting the licensing process and remain in continuous contact with medical device manufacturers, importers and others in the supply chain, including hospitals and group purchasing organisations. Regulators are to ensure the prevention of malpractices, hoardings and to support production, quality, and distribution logistics for smooth supply. The movement of goods carrying these items shall be given top priority for all clearances by respective statutory bodies. The smooth supply chain is most critical in this challenging time. This is not the time to find out faults in systems but to work together with each stake holder and support each other to fight this menace. India is capable with its abundant resources and needs to be channelised in right direction.

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