Not only are they exhibiting all symptoms of a slowdown, but they are currently in a state of shock. The trade which was showing 10 per cent growth annually is now showing a negative growth of 20 per cent.

Wholesalers are puzzled at this phenomenon. Explanations offered are various and speculative. "Maybe people go less to the doctor and medicines might have become a luxury during unemployment periods," said a wholesaler. "When he has cash in his pocket, he may not weigh the issue so much, but now when he is taking rest at home, he might buy some some pills over the counter."Be that as it may, pharma sales leave much to be desired. At this juncture, harried traders are looking for the kind of relief which the state government can ill afford.

In the wake of the recession, traders are pressing hard for their demands to thegovernment of Tamil Nadu. Apart from a cut in sales tax from 8 to 4 per cent, they want the present limit of Rs 5 lakh towards deemed assessment to be increased to Rs 25 lakh. In other words, the assessing authority shall without requiring the presence of the dealer or calling for his accounts accept the return submitted by him up to a turnover of Rs 25 lakh a year if the returns are prima facie correct and complete.

Traders are to submit Form A9 (return of exemption claimed) which they claim is a cumbersome procedure. ``When we are talking of liberalisation and simplification of the procedures and paper work, the procedures and formalities are taking us backwards,'' said a wholesaler. If the authorities have doubts about purchases, inspection authorities of the Sales Tax Department can call for the bills and check them on the spot, they feel.

Then there is another anomaly in the sales tax which has not been resolved since 1997. The state had exempted 21 lifesaving drugs (mostly relating to cancer, TB andleprosy) from ST. The list mentioned contained only generic names. Often ST inspectors do not understand the difference between generic and brand names and insist on tax for branded products. A notification is yet to come from the government that drugs sold in brand name or generic name should be exempted in the categories mentioned earlier. Then the exemption does not consider some combination drugs having the generic name from the exemption list as the main component.

With the government having turned a deaf ear to their pleas and a blind eye to their plight, pharma traders seem resigned to the bitter pill that business has become for them.