10% Margin Hike, More Credit Support: Govt Sweetens Terms For Generic Medicine Shops

Published 20 June 2026 · health

10% Margin Hike, More Credit Support: Govt Sweetens Terms For Generic Medicine Shops Reported By, Last Updated: June 20, 2026, 08:00 IST The government aims

10% Margin Hike, More Credit Support: Govt Sweetens Terms For Generic Medicine Shops Reported By, Last Updated: June 20, 2026, 08:00 IST The government aims to make the Jan Aushadhi ecosystem more attractive for entrepreneurs and distributors while improving medicine availability across the country Under the revised framework, PMBI has extended the credit period available to distributors from 60 days to 90 days for payments made to the bureau. In turn, distributors will be required to provide Jan Aushadhi Kendra operators with a 75-day credit period for medicines supplied to them, giving retailers greater financial flexibility. Representational image/Reuters In a significant boost to the government’s flagship affordable medicines scheme, the Pharmaceuticals & Medical Devices Bureau of India (PMBI) has increased the trade margin for Jan Aushadhi Kendras from 20 per cent to 30 per cent—a move aimed at improving the viability of stores operating under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) and strengthening the distribution network for low-cost generic medicines across the country. The revised margin is part of a broader package of measures announced by PMBI to improve sales of Jan Aushadhi products, ease working capital pressures on distributors and retailers, and address inventory-related concerns within the supply chain.

“The latest package appears aimed at improving the business viability of Jan Aushadhi Kendras rather than merely expanding their numbers. A government-commissioned evaluation of the scheme’s “continuous viability" found that gains for retailers have not been uniform, with only 43.4 per cent reporting an increase in income since opening their stores," a senior government official privy to the development told News18. The study, he said, also flagged operational issues such as medicine availability and supply-related challenges. “Against this backdrop, the decision to raise retailer margins to 30 per cent, extend credit periods and provide additional safeguards against inventory losses could help strengthen the economics of running a Kendra and improve retailer retention across the network." By addressing these concerns together, PMBI appears to be shifting its focus from expanding the number of outlets to improving the sustainability of existing ones, the official added. Credit support, expiry protection and higher incentives Under the revised framework, PMBI has extended the credit period available to distributors from 60 days to 90 days for payments made to the bureau. In turn, distributors will be required to provide Jan Aushadhi Kendra operators with a 75-day credit period for medicines supplied to them, giving retailers greater financial flexibility.