Pharmacists Claim New Rs50 Medicine Subsidy is a “Brutal and Ruinous Burden”

A major row has erupted between the Mauritian government and the pharmaceutical sector following the expansion of a state medicine subsidy, which industry leaders claim is a “brutal” and “ill-prepared” move that could push pharmacies into financial ruin.

The Alliance du Changement government announced that from 15 January 2026, a subsidy of Rs 50 will be applied to boxes of medicine retailing at Rs 100 or more.

While originally intended for three categories of illness, the scheme was expanded on 26 December to cover 11 categories, including anti-diabetics, cancer treatments, vaccines, and inhalers.

“Working at a Loss”

Despite the government’s aim to alleviate the financial burden on families in Mauritius and Rodrigues, the Pharmaceutical Association of Mauritius (PAM) has warned that the measure represents a “poisoned New Year gift.”

Ashwin Dookun, President of the PAM, argued that the policy effectively transfers state costs onto private businesses. He highlighted several critical pressures facing the 460 members of the association:

• Administrative Overload: New regulations (Section 7D of Regulation 131) require pharmacists to submit digital stock declarations, bringing the total number of annual MRA filings to 15.
• Shrinking Margins: Since 2023, pharmacies have operated under a “Regressive Mark-Up,” which slashed profit margins from 21.6% to 16.6%.
• Example: On a box of Telma 20mg sold for Rs 100, a pharmacy currently earns just Rs 16.60 in profit.

“We cannot accept working at a loss,” Mr Dookun stated, calling for an urgent meeting with the authorities to adjust the mark-up rate and resolve “ambiguous” passages in the new law.

Government Stands Firm

The Minister of Commerce, Michael Sik Yuen, has dismissed the industry’s concerns, describing the subsidy as a vital social measure rather than a seasonal gift.

Speaking to Le Défi Quotidien, Minister Sik Yuen insisted the policy was thoroughly vetted by the Council of Ministers. “We do not believe this measure will lead to a significant increase in operating costs,” he said, adding that all stakeholders must now “follow suit.”

Looking Ahead to 2026

The Minister also revealed that the government is finalising a Parallel Import plan for 2026. This move is designed to combat recurring medicine shortages and further drive down prices for Mauritian and Rodriguais consumers.

However, for the pharmacists on the front line, the immediate concern remains the 15 January deadline. The PAM had suggested applying the subsidy “at the source” to avoid additional administrative costs, a proposal they claim was ignored due to a lack of consultation.

Source: Defi Media