Ayurvedic Drug Manufacturers Object to Direct Procurement Directive

Nepal’s Ayurvedic pharmaceutical manufacturers have opposed a government directive instructing local governments to directly procure medicines from state-owned manufacturers, arguing that the move undermines fair competition and public procurement laws.

The Nepal Ayurvedic Medicine Manufacturers Association said the circular, issued to local governments on August 3 (Shrawan 18), encourages the direct purchase of medicines produced by Nepal Drugs Limited and Singha Durbar Vaidyakhana without competitive bidding.

In a statement released on Thursday, Association President Buddhiman Shakya urged the government to withdraw the directive, saying it conflicts with the Constitution, the Public Procurement Act, the Drugs Act, and other prevailing laws.

The association called for public procurement decisions to be based on Good Manufacturing Practice (GMP) certification, price, supply capacity, legal compliance, and product quality, rather than ownership of the manufacturing company.

It also said Nepal’s 52 private Ayurvedic pharmaceutical companies produce GMP-certified medicines, contribute to domestic employment, reduce import dependence, and generate tax revenue. The association warned that limiting procurement to state-owned manufacturers could weaken competition and increase medicine prices for the public.