Govt plans higher margins, longer credit to make Jan Aushadhi Kendras attractive

India’s government is revising financial incentives for Jan Aushadhi Kendras to enhance their sustainability and attract more retailers. Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), margins for retailers will be gradually raised to 50% from the current 30%, according to two government officials and a document reviewed by *Mint*. The move aims to offset lower medicine prices compared to branded alternatives and ensure retailers maintain full inventory levels. To ease financial strain, the government will extend credit periods from 45 days to 75 days for retailers and 90 days for distributors, reducing working capital pressures. The Pharmaceuticals & Medical Devices Bureau of India (PMBI) will also absorb losses from expired inventory and provide an additional 2.5% margin on sanitary pad invoices to cover distributor logistics costs. Manoj Joshi, secretary of the Department of Pharmaceuticals, stated that these adjustments are necessary to make operations viable for shopkeepers. The PMBJP initiative, launched 12 years ago, currently operates through 20,000 franchisee-run stores nationwide, offering over 2,110 generic drugs and 315 medical devices. The program targets reducing out-of-pocket healthcare expenses and promoting generic medicine adoption. By March 2027, the government plans to expand the network to 25,000 stores, supported by enhanced supply chain credit terms and structured margins. Experts emphasize the need for robust supply systems to sustain the program’s growth. Indu Bhushan, former CEO of the National Health Authority (NHA), highlighted the scheme’s role in advancing India’s *Atmanirbhar Bharat* (self-reliant India) vision by prioritizing generic medicines. The reforms aim to align financial incentives with operational realities, ensuring long-term viability for retailers and distributors across the network.