Shortage of Cetamol and Jeevan Jal in Market After Production Halt
Nepal Health News, Kathmandu – Nepal Aushadhi Limited has halted the production of Paracetamol (Cetamol) and Oral Rehydration Salts (Jeevan Jal) for the past one and a half months. This situation has arisen due to the Ministry of Health's failure to proceed with the medicine procurement process and lack of concern from the ministry.
According to General Manager Kailash Kumar Paneru, the company was preparing to manufacture medicines for cholesterol, diabetes, and high blood pressure, but they are now reconsidering because there is no clear market for even the produced Cetamol and Jeevan Jal.
The company has repeatedly requested the Ministry of Health to sign a Memorandum of Understanding (MoU) to sell its medicines to government hospitals and health institutions. However, due to delays in the agreement process, both the company's production and expansion plans are now at a standstill.
Despite purchasing a large amount of raw materials to boost production, sales were halted when various government bodies did not procure the medicines, forcing the company to stop production, said General Manager Paneru. According to him, medicines worth Rs. 15 million are currently in stock, with Cetamol and Jeevan Jal being the highest in quantity.
On Chaitra 20, 2079 (April 2, 2023), the government had decided to provide Rs. 240 million to Nepal Aushadhi Limited to produce 20 types of medicines. A committee led by the then Chief Secretary Shankardas Bairagi had also decided that the Ministries of Health, Industry, and Finance would coordinate to implement the improvement plan for the company. Based on that decision, the company increased production by 10% in two phases, but has still not received the allocated amount, said Paneru. Even though production rose by 10%, last year’s production level could not be matched, he added.
Paneru claims that the Ministry of Health’s reluctance to sign an MoU is pushing Nepal Aushadhi Limited toward crisis. Although the Chief Secretary-led committee had recommended that the Ministry of Health and the company sign the MoU, the process has yet to move forward.
He said, "The committee formed by the government on Chaitra 20, 2079, had recommended that Nepal Aushadhi Limited and the Health Ministry sign an MoU. We had already initiated the process. The file is being passed back and forth between the Health Department and the Ministry. Even though the committee formed within the ministry had finalized the matter, the file is still stuck there. We are just waiting and following that process."
Paneru also alleged that some employees within the Department of Health Services are delaying the MoU process due to personal interests. Currently, seven provincial supply centers, as well as hospitals like Bir Hospital, Civil Hospital, Shahid Gangalal Heart Centre, Teku Hospital, Bhaktapur Cancer Hospital, and the Human Organ Transplant Center, along with 12 municipalities, are purchasing medicines from Nepal Aushadhi Limited. However, if the MoU with the Health Ministry is signed, all government hospitals and local-level health units will be able to purchase medicines directly from the company.
Nepal Aushadhi Limited has been consistently requesting the Ministry of Health to sign the MoU to sell its medicines to government institutions. But due to the ministry's delay, the company's production and expansion plans remain in limbo.
— News Agency Nepal
