Kerala Medical Services Corporation (KMSCL), the central procurement agency for all essential drugs and equipment for public healthcare institutions of the Health Department, owes pharmaceutical companies Rs 693.78 crore for the supply of life-saving drugs, surgical equipment and fluids. The assembly records show that the dues to companies swelled from Rs 6.93 crore in 2020-21 to Rs 383.26 cr in 2024-25. 

The list of dues shows that 177 suppliers await payment from the government for an amount ranging between Rs 848 to as high as Rs 67.9 crore. There are 92 companies for which payments above Rs 1 crore are pending, and for three companies, Vivek Pharmachem Limited, Unicure (India) Limited and Aculife Healthcare Private Limited, the dues have soared above Rs 50 crore. 

Kerala State Drugs and Pharmaceuticals Limited (KSDPL), which supplies essential and life-saving medicines to cater to the needs of the patients in government hospitals, is also included in the list, and KMSCL owes KSDPL Rs 12.93 crore.

Health Minister Veena George, however, maintains that tender procedures for the procurement of essential drugs in hospitals were not affected due to mounting dues. She told the assembly that tenders for the supply of generic drugs for 2025-26 were notified in December 2024. 

Kozhikode Medical College has witnessed intense protests over the non-availability of medicines as distributors withheld supply, citing pending dues. Kozhikode MP M K Raghavan staged a 24-hour fast outside the hospital, alleging negligence on the part of the government in ensuring prompt supply of medicines to the patients. In January, distributors stopped the supply of medicines to the hospital. 

According to the Minister, the government allocates funds under grant-in-aid to the KMSCL. In the current financial year, an amount of Rs 356.4 crore was allotted. The corporation has placed a demand for additional assistance of Rs 524.87 crore which is being considered by the government, Veena George said. She added that although there are dues, no such situation prevents companies from taking part in the tender process. 

In response to different queries on the non-availability of drugs, Veena George said that in case distributors fail to supply drugs, steps are taken to communicate directly with the companies concerned and if needed, legal steps are also taken. She added that inter-warehouse transfer and inter-institution transfer are done via district warehouses to deal with any medicine shortage.