The Hindu Business Line : Don't control drug prices: Commerce Ministry

Efforts by the Ministry of Chemicals to reduce medicine prices by putting in a regulatory framework for the pharmaceuticals industry has run into another roadblock. The Ministry of Commerce and Industry has written an official letter to the Ministry of Chemicals refusing to support the draft legislation for the National Pharma Policy.

The pharmaceuticals industry had earlier expressed reservations against the proposed policy.

According to the Commerce Ministry, the move is against the policy direction being pursued by the Government for the past 11 years.

Stating that since 1995 the policy had been to steadily reduce the number of drugs under price control, the Commerce Ministry said "the policy regime has increased competition and ensured that prices remain affordable. Further, our domestic industry for generic drugs has become globally competitive. Many of the market leaders in our pharmaceutical industry are also acknowledged to be internationally competitive world-beaters in their own rights."

In this context, the Commerce Ministry has said that keeping medicine prices under control as proposed by the Ministry of Chemicals would not be beneficial for the industry.

According to the letter, "It would, therefore, appear to be a retrograde step to reverse the policy we have been pursuing for so many years. We need to continue our progressive policy and make its regulatory structure firm and not send out signals that is considered regressive."

Finally, the letter states: "as there is no clearly established nexus between the policy goals and the proposed legislation, it would not be possible for this department to support the proposal."

Joint committee

Meanwhile, the 14-member industry-Government joint committee, that was set up by the Ministry to iron out the point of differences between the manufacturers and the administrative authorities, has failed to reach any consensus on key issues such as whether the National Pharmaceuticals Pricing Authority should have suo motu powers to bring drugs under its regulatory framework, price bands and availability. The committee that was supposed to submit its report by end of November is now expected to submit it by the middle of this month.

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