The Hindu Business Line : Prices of almost all life-saving drugs unchanged: Paswan

PUTTING to rest concerns about steep increase in prices of essential drugs, the Chemicals and Fertilisers Minister, Mr Ram Vilas Paswan, today told the Lok Sabha that prices of most of the life-saving drugs have remained unchanged.

In a response to a motion moved by Mr Ajoy Chakraborty (CPI) and some other members, Mr Paswan quoted the ORG-IMS monthly report for May 2005 according to which, only 833 (2.73 per cent) medicines out of 30,485 drugs analysed had increased while the cost of 245 (0.81 per cent) had declined.

"The prices of 29,407 (96.46 per cent) had remained the same, in most cases price increases were well within reasonable limits," Mr Paswan said.

Also, the percentage change in the Wholesale Price Index for drugs and medicines is less than that for all commodities during the last five years, he added.

On the steps taken to contain the price hike, Mr Paswan said that the Government had set up a Committee last year to examine the span of price control including trade margins. This Committee has recommended "intensive monitoring" of prices of all those drugs out of the select basket (National List of Essential Medicines, 2003) which are not under price control, he said.

Elaborating on this, Mr Paswan said that the Committee has also recommended ceilings on trade margins of drugs, a system of price negotiations for new patented drugs, special schemes for people below poverty line, introduction of Rajasthan model for bulk purchase of medicines directly from the manufacturer and selling them at reduced prices.

The Committee had also recommended compounding of offences under the Essential Commodities Act, establishment of First Schedule of Drugs (Prices Control) Order, 1995 cells in all states on the Karnataka model, price negotiations at the time of launching of a new patented drug and increasing public awareness.

The National Pharmaceutical Pricing Authority (NPPA) had also asked companies the reasons for steep price rise and about 18 of them have reduced prices voluntarily in respect of 29 formulation packs ranging between 1.15 per cent and 34.62 per cent.

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