THE MINISTER OF CHEMICALS AND FERTILIZERS & MINISTER OF STEEL (SHRI RAM VILAS PASWAN )
(a) to (d) & (g) : 74 bulk drugs are specified in the First
Schedule of the Drugs (Prices Control) Order,1995 (DPCO,95).
Prices of non-Scheduled formulations are fixed by the manufacturers
themselves keeping in view the various factors like cost of production,
marketing/selling expenses, R&D expenses, trade commission, market
competition, product innovation, product quality etc. The Government
takes corrective measures where the public interest is found to be
adversely affected. The percentage change in Wholesale Price Index
(WPI) of drugs and medicines has been 5.85, 3.48, 0.71 and 2.55
during the years 2000-01, 2001-02, 2002-03 & 2003-04 respectively
whereas it was 7.16, 3.60, 3.41 and 5.46 respectively for all commodities. The National
Pharmaceutical Pricing Authority (NPPA) has informed that for a very small sample of 15
top formulations of 15 top bulk drugs from both, Scheduled and non-Scheduled categories,
the prices in the sample from decontrolled basket rose annually by 10.6% while the increase
was about 1% for the sample from controlled basket.
The Government have constituted a Committee under the Chairmanship
of the Joint Secretary (Pharmaceuticals) to examine the issue of span
of price control on pharmaceuticals including trade margin.
(e): No, Sir.
(f): Does not arise in view of reply to (e), as above.
