The Hindu Business Line : Benchmark for drugs outside price control is Rs 3

The Ministry of Chemicals and Petrochemicals has finalised the benchmark price of Rs 3 per tablet for medicines that will be kept outside price control regime in order to encourage producers price their medicines low to avoid control.

Sources told Business Line that the Ministry would be placing before the Union Cabinet the final draft of the National Pharma Policy within 10 to 15 days with the benchmark price of Rs 3. This was initially suggested by the Ministry of Health and eventually agreed to by the Ministry of Chemicals and Petrochemicals, the sources said.

This would effectively mean that if a company sells a particular medicine within Rs 3 per tablet, then it would not have to go through the stringent monitoring mechanism of price control by the regulator.

Under price control, the regulator will enjoy powers to monitor production and marketing and could also set the price at a particular level.

The draft would include a list of 354 essential drugs to be placed under control. These 354 drugs are sold in various standard sizes and add up to 663 medicines (i.e. a paracetamol 250 mg and paracetamol 500 mg are counted as two medicines).

Out of these 663 medicines, 124 are available at less than/up to Rs 3 per tablet. The policy may suggest keeping these medicines out of price control, sources explained.

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