Distributors of medicines and surgical devices have warned of stopping their supply to the Government Medical College Hospital (MCH), Kozhikode, from January 10 citing the delay in clearing around ₹90 crore as dues.

Functionaries of the Kozhikode district unit of the All-Kerala Chemists and Druggists Association (AKCDA) and the association of surgical device distributors told the media on Monday (January 6) that payments for supplies to the hospital’s fair price medical shop, which provides medicines to patients at subsidised rates, after March 31, 2024, were pending.

In a letter dated January 3, addressed to the hospital superintendent and senior officials, AKCDA district secretary C. Sivaraman pointed out that a similar situation had arisen in March 2024. At that time, an agreement was reached between the distributors and the authorities to resolve payment issues through consultations. However, several distributors claim the agreement was not honoured, and only dues up to March 31, 2024, were cleared by December.

“The distributors are facing financial difficulties because of this. Many have not encountered such difficulties before. The authorities are saying they don’t have funds,” the letter stated.

Around 80 distributors currently supply medicines and surgical devices to the fair price shop. AKCDA leaders said that many distributors have had to shut down operations due to the financial crisis.

The distributors have also sent memorandums describing their plight to Health Minister Veena George, Minister for Public Works P.A. Mohamed Riyas, M.K. Raghavan, MP, MLAs from the city, and senior Health department officials.