Ministry may impose temporary freeze on scheduled drug prices
The prices of medicines are set to undergo a major change once the new national drug policy is notified, depending on the formula the government is expected to finalise in the next few days.
By Gunjan Pradhan Sinha, TNN |
NEW DELHI: The prices of medicines are set to undergo a major change once the new national drug policy is notified, depending on the formula the government is expected to finalise in the next few days.
There, however, may be a period of price freeze on the price-controlled drugs so that consumers do not immediately feel the change in their medical bills. Sources told ET that the chemicals and fertilizers minister Ram Vilas Paswan is in the process of taking a call on the various options before him.
While the ministry would prefer to control the prices of all medicines containing the price-controlled ingredients as well as the drugs in the national list of essential medicines 2003, the industry wants a liberal pricing regime.
According to the industry, the government could either freeze the prices of all drugs currently under price control (drugs containing any of the 74 classified ingredients) for a year or gradually release them from government control. The price freeze could be at the maximum retail price prevailing six months before the date of notification. There could be a “graded increase” in their prices after that.
In return, the industry would agree for a reduction in the current prices of 354 essential drugs, say 5% to 10%. The essential drugs list covers all therapeutic categories and include commonly used drugs like Amoxycilin, Ampicilin, Azithromycin, Ibuprofen and Diclofenac. Some drugs covered by the essential drug list are also in the existing list of price controlled drugs.
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The ministry’s efforts are to comply with a Supreme Court order to bring all essential drugs under price control. Also, if the cost of raw materials for these drugs goes up, they will reserve the right to approach the National Pharmaceutical Pricing Authority (NPPA) for raising the price of the drug.And some of the 354 items listed in the national list of essential medicines will be exempt from price control. For instance, those drugs which are supplied to hospitals directly may not come under drug price control. Besides, the list of 354 essential medicines also includes some medical devices, vaccines and biotechnology drugs which may be exempted.
And finally, over-the-counter (OTC) drugs also will be exempted from price control. These drugs appear in schedule K of the Drug Price Control Order. Drugs related to allergy prevention and anti-smoking pills are some of the OTC drugs under schedule K of the Drugs and Cosmetics Act 1940.
gunjan.pradhan@timesgroup.com
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