(a) whether the Government plans to decontrol drug prices and limiting control only on essential drugs manufactured by less than five producers;
(b) if so, the details thereof along with the reasons therefor;
(c) whether the prices of commonly used drugs have nearly gone up by 10% every year for the last ten years as reported by National Pharmaceutical Authority (NPPA); and
(d) if so, the manner in which the Government will safeguard the interests of the common man?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS(SHRI SRiKANT KUMAR JENA)
(a) to (d): The 74 bulk drugs specified in the First Scheduled of the Drugs
(Prices Control) Order 1995 (DPCO, 1995) and the formulations based thereon are
under price control and their prices are fixed / revised by National Pharmaceutical
Pricing Authority (NPPA) in accordance with the provisions of the 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 NPPA monitors the prices of all formulations based on the reports of ORG
IMS and the information furnished by the individual manufacturers. Wherever a price
increase beyond 10% per annum (20% before 01-04-2007) is noticed, the manufacturer is
asked to bring down the price voluntarily failing which, subject to prescribed
conditions action is initiated under paragraph 10(b) of the DPCO, 1995 for fixing
the price of formulation in public interest. This is an ongoing process. Based on
monitoring of prices of non-Scheduled formulations, NPPA has fixed prices in case
of 27 non-Scheduled formulation packs under paragraph 10(b) and companies have
reduced prices voluntarily in case of 60 formulation packs. Thus, in all, prices
of 87 packs of non-Scheduled drugs have got reduced as the result of intervention
by NPPA.
A draft National Pharmaceuticals Policy, 2006, which, inter-alia, includes
to ensure the availability of life saving drugs at reasonable prices, was submitted
before the Cabinet for its approval. The Cabinet considered the Policy in its meeting
held on 11-01-2007. It was decided that the matter may, in the first instance, be
considered by a Group of Ministers (GOM). The GOM had held four meetings but did not
make recommendations to the Cabinet. Draft National Pharmaceuticals Policy can be
finalized only after GOM makes its recommendations to the Cabinet.