Saket Kyal, founder of Jayashree Healthcare Industry in Lipanimal, Bara, has expressed relief after the Supreme Court annulled a decision by the Department of Drug Administration (DDA) that had prohibited the sale of dietary supplements through pharmacies.

Kyal, who invested Rs 500 million into the domestic production of dietary supplements, had been under months of stress due to the DDA’s directive, which halted the import and sale of such products and even ordered their seizure and destruction.

The Supreme Court recently ruled that banning the sale of legally marketed dietary supplements authorized by the Department of Food Technology and Quality Control (DFTQC) was flawed. The verdict overturned an earlier High Court decision from February 12, 2020.

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.

The DDA had previously issued a notice allowing only listed medicines to be sold in pharmacies. As a result, non-listed dietary supplements were removed from shelves, significantly impacting their market availability. “Since the DDA began taking action, pharmacies refused to stock dietary supplements, which severely disrupted our marketing efforts,” Kyal said.

Kyal had launched Jayashree Healthcare Industry two years ago, aiming to produce dietary supplements locally, in contrast to the prevailing trend of imports. Before this venture, he spent over a decade in his family’s medicine distribution business. Now 40, Kyal returned to Nepal in 2068 BS after completing his Master’s in Pharmacy in the UK. Though initially considering a government job, he ultimately followed in the footsteps of his father, Jyotikumar Kyal, who began a medicine trade in 2047 BS and remains active in the business.

“After working in distribution for more than 10 years, I wanted to apply that experience to manufacturing,” said Kyal. Realizing that the vast majority of dietary supplements consumed in Nepal were imported, he saw a strong opportunity in domestic production.

According to the Department of Customs, Nepal imports around Rs 1.5 billion worth of dietary supplements annually through formal channels. Kyall claims the actual figure, including informal imports, could be as high as Rs 6 billion.

“There is huge potential in the domestic market,” he said. “Local production barely meets 1% of demand. This leaves massive room for expansion.”

Jayashree Healthcare has so far registered 30 products under the brand name "Thanks" and plans to increase the number to 100.

The company currently has the capacity to produce 1.6 million capsules and two tons of powder daily. It also has export ambitions. “Countries like Sri Lanka, Kenya, Vietnam, and Cambodia have demand for dietary supplements. There's real export potential, but supportive government policies are essential,” Kyal emphasized.

He also criticized current government policies, which he says hinder both import of raw materials and marketing of finished products. “While pharmaceutical companies get a 1% customs duty on raw materials and packaging, dietary supplement producers face duties ranging from 20 to 40%, plus VAT and excise duty in some cases,” Kyall explained. “This makes it hard to compete with imports and even harder to export.”