Only 33% drugs under price control: Govt

The government has said only 33 per cent in value terms of the pharma market would be brought under price control and not 75 per cent as is being claimed by certain sections of the industry.

The announcement comes in the wake of the Supreme Court order to control prices of drugs in the national list of essential medicines.

The ministry of chemicals and petrochemicals today tried to reassure the industry regarding price control of drugs under the new policy regime.

"The 354 formulation drugs that are proposed to be brought under price control will form only 8 per cent in value terms, while the existing 74 bulk drugs and their formulations, account for 25 per cent. In all, only 33 per cent of the medicines would be under the price control umbrella," said Ram Vilas Paswan, Union minister for chemicals and fertilisers.

"It is the Supreme Court's directive that all essential drugs be brought under price control. The list is prepared by the health ministry and the directive is from the SC, and thus we have to implement it. Moreover, it is necessary to come up with the proposal to keep the UPA government's commitment of providing low-cost drugs to the common man," said Paswan.

However, he asked the industry not to worry as only essential drugs would be brought under price control.

Paswan further said there was a fundamental difference between the earlier price control order and the present proposal and the two should not be viewed in the same light.

"The earlier drug price control order aimed at ending companies' monopoly on drugs. This was done at two levels ""bulk drugs and formulations. But the present one is aimed at controlling the prices of only essential drugs," he said.

Refuting the argument that price control would force drugs out of the market, Paswan said that many medicines were being phased out as the diseases they were indicated for were disappearing.

Paswan did not say when the draft policy would come before the Cabinet for its approval. He also said the comments made by various government on the policy is confidential and can be discussed only in the Cabinet.

"Usually, once the draft is circulated it can go to the Cabinet in 15 days for approval," he said.