Latest report on the government’s flagship Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), a scheme under which the government sells affordable generic drugs, showed that over 85% of the customers support the expansion of the scheme while over 90 per cent said they would recommend Jan Aushadhi outlets to friends and family. As on March, over 18,000 Jan Aushadhi Kendras (JAKs) were operational across the country supplying generic medicines at 50-80% lower rates than branded products. The government has a target to open 25,000 JAKs by March 2027, ensuring access even in rural and remote areas through a franchisee-based model.
The report noted that JAK stores have evolved into a sustainable business model with almost 85% of retailers expressing satisfaction with the scheme, and about 80% said that they planned to expand their businesses in the future. A majority (70%) also reported that they did not require bank loans to establish their outlets, indicating relatively strong financial sustainability.
Logistical Bottlenecks
However, the report findings point out to several structural challenges. Many retailers reported that they face difficulties in getting timely delivery of medicines, especially the ones that are in high demand. Some retailers mentioned that they cannot return the expired medicines, which leads to losses. “A logistical challenge is establishing and maintaining an efficient supply chain to ensure the regular availability of medicine at JAKs across the country. A lack of adequate infrastructure and delivery facilities may impede medicine supply. The department has already planned a structured system to return expired or shelved medicines,” the report stated.
Overcoming Doctor Resistance
Another major concern flagged by the retailers include limited support from the doctors. They stated that doctors do not recommend or prescribe generic medicines to their patients, which affects the sales and awareness of JAKs. “Retailers also talk about the expressed concerns about the shape and life of medicines and tablets, which may affect the trust and satisfaction of the customers,” as per the report.
The scheme’s product portfolio includes 2,439 items, including medicines surgical items, medical consumables, and devices spanning therapeutic categories such as anti-infectives, anti-diabetics, cardiovascular drugs, anti-cancer medications, and gastrointestinal treatments.
The study said that even though some consumers expressed doubts or concerns about the quality and efficacy of Janaushadhi medicines compared to branded ones, most JAK stores believe that generic drugs possess an equivalent level of quality compared to branded pharmaceuticals. “This confidence needs to increase more so that for both customers and retailers, generics become easy to accept and use,” as per the report.
The study, commissioned by the department of pharmaceuticals (DoP) and conducted by the Entrepreneurship Development Institute of India, surveyed 750 stakeholders across 22 states and 66 districts to assess the continuous viability of JAKs.