Entrepreneurs involved in the dietary supplement business have raised concerns over restrictions preventing them from selling their products through drug stores. They say the Department of Drug Administration (DDA) has issued a directive prohibiting the sale of unregistered pharmaceutical products, which has disrupted their business.
On January 9, the DDA issued a public notice reminding those licensed under the Drug Act, 2035 to sell only products registered with the department. The notice also called for an immediate halt to the sale of any unregistered or government-banned drugs. However, local entrepreneurs and industrialists argue that this directive has also affected dietary supplements, which are authorized by the Department of Food Technology and Quality Control (DFTQC), not the DDA.
Saket Kyal, operator of Jayashree Healthcare Industry, said his business has been forced to shut down due to the DDA’s notice. Speaking during an interaction held in Birgunj by the parliamentary Industry, Commerce, Labor, and Consumer Welfare Committee, Kyal alleged that the DDA has created fear among sellers by banning dietary supplements in drug stores.
Kyal also claimed that DDA officials have shown bias by targeting dietary supplements while allowing other unregulated products—such as herbal items, children’s food, and various beverages—to be sold in drug stores without issue. He said the future of his business, which was started with an investment of millions, now looks uncertain.
The DDA has defended its position, stating that products containing vitamins and minerals—such as calcium, iron, and magnesium—are being sold in the form of medicine without proper regulation, posing risk for the public. It also warned that beauty products with medicinal ingredients are being marketed without regulatory approval, potentially endangering public health.
DDA Director General Narayan Dhakal said some of these products, including those sold on doctors’ recommendations, were imported and sold without registration, prompting regulatory action.
Amid the controversy, the Supreme Court has ordered the DDA and DFTQC to submit a report within three months detailing the production, quality, and regulatory status of dietary supplements in the market.
The parliamentary committee coordinator Prakash Sharan Mahat has summoned officials from both departments for discussion and has assured industrialists that efforts will be made to resolve the issue. During the interaction, stakeholders expressed frustration over the conflicting roles of the two departments—one approving the products and the other confiscating them.
Manufacturers argue that dietary supplements are classified as food and have therefore been registered with the DFTQC. If drug stores can no longer sell these products, they say, then the sale of other non-medicinal items in drug stores should also be banned. Kyal also pointed out that while many unregulated products continue to be sold freely, businesses like his are being unfairly targeted.
Recently, the DDA registered Shreekesh Ayurvedic Hair Oil, produced by Saptarishi Oil and Cosmetic Industry, which was required to disclose its ingredients and production method as part of the process.
