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Our Bureau

Mumbai , Oct. 4

THE Indian Drug Manufacturers' Association (IDMA) has written to the Union Chemicals and Fertilisers Ministry urging it to pursue a progressive policy of price decontrol with strong competition.

Referring to the recent report submitted by a taskforce on affordable medicine, IDMA writes: "... .if the regressive and price control expansionary suggestions and various other retrograde constraints are imposed on the national pharma industry as recommended by the Task Force, the current confidence of the industry will be totally shaken up, the progress made so far will face serious setback and our industry — for want of resources and vitality — will not be able to continue its journey and sustain — leave alone improving its leadership position in India and abroad in the face of powerful global competition."

Several committees appointed by the Centre over the last 10 years have accepted that price controls are counter-productive and not in public interest, says the letter.

"Progressive drug pricing decontrol since 1987 has led to substantial investment in indigenous capacity expansions, improved availability of several bulk drugs and formulations for both domestic consumption and exports, and significant strengthening of the indigenous industry from cost-economics viewpoint," it pointed out.

In fact, the association's letter said that progressive drug pricing decontrol has facilitated reduction in consumer prices of several essential drugs, helped avoiding many price increases despite inflationary pressures and has finally made India the cheapest source of essential drugs and formulations. It has also led to increased investments in research, the letter added.

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