The Union Health Ministry has proposed a draft amendment to the Drugs and Cosmetics Rules, 1945, requiring retail pharmacies to install CCTV surveillance for the sale of high-risk drugs. The All India Organisation of Druggists and Chemists (AIOCD) has opposed the move, citing implementation costs of ₹50,000 to ₹1 lakh per outlet. Investors may watch how this impacts operational costs for organized pharmacy chains.
The Union Ministry of Health and Family Welfare has proposed a draft amendment to the Drugs and Cosmetics Rules, 1945, aimed at increasing oversight of high-risk medication. The government wants retail pharmacies to install and operate CCTV surveillance systems to record the sale of drugs categorized under Schedule H, H1, and X. These categories include narcotics and habit-forming medicines that are strictly regulated to prevent abuse.
The proposed rule requires shops to store video footage for at least three months. While this mandate focuses on retail outlets, the current draft excludes wholesale operations. The primary objective is to track the distribution of sensitive medicines and curb illegal sales.
The All India Organisation of Druggists and Chemists (AIOCD) has formally raised objections to the proposal, stating it is impractical and will put a heavy financial burden on smaller pharmacy owners. In a letter to Health Secretary Punya Salila Shrivastava, the organization pointed out that while large pharmacy chains may be able to afford these systems, small and medium-sized shops will struggle to meet the requirements.
According to estimates by the AIOCD, the initial cost to set up cameras and server storage could range between ₹50,000 and ₹1 lakh per shop. Beyond the upfront investment, the association highlighted significant operational risks in rural areas. Frequent power cuts and unreliable internet connectivity in many remote parts of India make the goal of continuous surveillance technically difficult. The AIOCD also noted that finding skilled technical staff for maintenance in these regions remains a challenge.
For investors tracking the organized retail pharmacy sector, this development highlights the potential for increased compliance and technology costs. While large retailers often have existing security infrastructure, the mandate would require upgrades and potentially higher maintenance spending to meet these specific government guidelines. The next important update to watch for is whether the government proceeds with this rule as a mandatory blanket policy or considers the industry's request for financial support or a more flexible implementation timeline.