The Hindu Business Line : Draft pharma policy in line with SC order: Paswan

Price control issue
The Ministry said that it had never promised a monitoring system in place of the cost-based price control.
As per the draft policy, price control would only cover 12 pc of the market.
National Pharmaceutical Price Authority gets back power to bring under price control "any" drug in public interest.

Mr Ram Vilas Paswan

New Delhi , Jan. 13

Just days after the pharmaceutical industry vehemently protested against the draft pharma policy which was referred to a Group of Ministers for a rethink, the Minister of Chemicals and Fertilisers, Mr Ram Vilas Paswan, has accused the industry of lobbying and misleading some Ministers.

"The Government, however, would not be influenced," said Mr Paswan. He said that the decision to refer the matter to a Group of Ministers was only routine and no indication that other Ministries were opposed to bringing essential medicines under the purview of price control.

"The proposed policy is in tune with the Common Minimum Programme of the UPA Government which had promised to provide health insurance, make life saving drugs available for right prices, revive PSUs and increase health expenditure from 0.9 per cent of GDP to 2-3 per cent in five years," he added.

The Ministry also said that it had never promised a monitoring system in place of the cost-based price control it suggested finally. "We had only agreed to look into the feasibility of such a mechanism, but no consensus had been reached with the industry," said Ms Satwant Reddy, Secretary, Department of Chemicals and Petrochemicals, who chaired the 14-member committee set up in the expectation that differences between the industry and Government would be resolved.

According to Mr Paswan, the draft pharma policy that seeks to implement a Supreme Court directive of 2003 to make essential medicines affordable has been true to its purpose. "The Supreme Court order very specifically says the two words `Price' and `Control' and there is no question of having misinterpreted that," he said.

The Minster also said that it had returned the powers withdrawn by the previous government to the National Pharmaceutical Price Authority to bring under price control "any" drug in public interest. This provision is provided under the Para 10 (B) of the DPCO, said Mr Paswan.

The industry has always strongly opposed price control of medicines on a cost base and suggested that only an unreasonable hike in prices of essential medicines be checked. It had also argued that research and development, now critical post-patent regime, would be affected by such a policy. Even after several committees and much debate later the issue seems to maintain its status quo.

The Ministry and industry have steadfastly differed on various issues. Mr Paswan reiterated that as per the draft policy, price control would only cover 12 per cent of the market. "The industry seems to forget that while the 74 drugs under DPCO 95 cover 20 per cent of the market today, they covered about 50 per cent of the market then," he pointed out, adding that only 32 per cent of the market would be covered once the essential list of 354 medicines were also brought under price control.

More Stories on : Pharmaceuticals | Policy | Courts/Legal Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BPO lure

Palm oil at the core for free trade pact

Draft pharma policy in line with SC order: Paswan

Sterlite Industries Q3 net rises 43 pc

Value-added services take CMC net up 78%

Reconstruction co to have foreign partners