The Hindu Business Line : CSIR doesn't feel at home on drug price control

The proposed National Pharmaceutical Policy 2006 is losing more friends on the issue of controlling medicine prices, even as the policy enters its final leg before being taken up for approval by the Union Cabinet.

Bringing a large number of drugs under price control would deny pharmaceutical companies "reasonable margins" and this would "adversely affect" their ability to carry out research, points out the Council of Scientific and Industrial Research (CSIR), in its response on the draft policy.

The proposed drug policy seeks to tighten its grip on prices of all 354 drugs in the National List of Essential Medicines, moving away from the promise of gradually reducing the span of control on medicine prices. At present, the Government controls the price of only 74 drugs on this list. The draft drug policy is expected to be taken-up by the Cabinet within a fortnight, an official with the apex Chemicals and Fertilisers Ministry told Business Line.

The CSIR's objections add ammunition to the opposition building up against the proposed drug policy. The Union Ministries of Finance, Commerce, and Industry and Health are said to have communicated their respective points of disagreement on the price-control aspects. The draft policy does not seem to find favour with the Planning Commission either.

The CSIR's view assumes significance, as its chief Dr R.A. Mashelkar's report on the pharma industry forms the backbone of several subsequent committees and reports The CSIR further points out that the country requires medicines tailor-made to treat diseases of this region.

And multinational companies do not do this, the note says, urging the Centre to continue with the existing price-control regime.

Jeopardises development

In its comment on the draft cabinet note overon the proposed drug policy, the Planning Commission said that increased price control would limit competition and discourage new investments. "Expanded price control would reverse policies set in motion by the 1991-92 economic reforms, which have led to the growth of a strong Indian pharmaceutical beginning to have the capability of producing new drugs. The proposal of expansion of price control would jeopardise jeopardizethe development," the note says.

On the rationale that the proposed increase in price-control was based on a Supreme Court order, the Planning Commission note said that the apex court's order should neededto be examined by the Attorney General to see if that is indeed the case. The issue of price-control, it says, said,merits a separate detailed note and discussion.

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