The Hindu Business Line : Uniform MRP for drugs likely soon

THE Government is planning to issue an order directing all pharma companies to have uniform maximum retail price (MRP) for their branded medicines all over the country. In many medicine packs, the price is printed as "MRP plus taxes" which provided the retailer a chance to mislead the consumer and charge higher price.

This was stated by the Union Minister for Chemicals, Fertilisers and Steel, Mr Ram Vilas Paswan, here on Thursday.

Addressing reporters after holding meetings with the senior officials of his Ministry, the Minister said, "There are complaints that drugs are sold in the retail market at prices ten times their wholesale prices. The printed price in the packs are MRP plus. I have asked the Ministry for a detailed report after which I will decide on the course of action."

Mr Paswan said that for most products the MRP includes all local taxes as well. But in case of drugs it is different. But the MRP is the maximum price. So the price cannot be more than the MRP. So the drug companies could be asked to work out things in a manner so that the printed MRP includes all forms of taxes and the retailer doesn't have a chance to charge higher prices."

"I have asked for the report in the next two-three days. The Parliament starts on June 28. The Ministry would initiate necessary steps in this direction before the Parliament session begins," he said and clarified that "this is not a policy issue and can be done with an administrative order only."

Mr Paswan said his Ministry is also considering segregating the medicines for the domestic and export market. Those for domestic use would be priced in the lower range.

Regarding petrochemicals, Mr Paswan also said that his Ministry has recommended to the Finance Ministry to bring down the import duty of naphtha in line with the recommendations made by the Kelkar Committee.

However, when asked about the much waited National Pharmaceuticals Policy, the Minister said that since the issue is pending in the court it is difficult to say how long it might take to have the policy in place.