The Bulk Drugs Manufacturers Association (BDMA) wants the number of bulk drugs placed under price control to be reduced from 74 to 20. Venkat Jasti, president of the BDMA, said he had moved the government to take necessary action in this regard.
The government regulates the prices of various commonly used bulk drugs under the Drug Price Control Order (DPCO) of 1995. The Order is implemented by the National Pharmaceutical Pricing Authority (NPPA). At present 74 of the 500 commonly used bulk drugs are kept under statutory controls. Though the number is likely to be brought down to around 30 as per the Pharmaceutical Policy of 2000, the decision was not implemented.
Speaking at the inauguration of the Pharmacy Week,2002 here, Venkat Jasti said, "We are seeking to reduce the number of price-controlled bulk drugs from 74 to 20." Time has come the Administration should help the industry and not create roadblocks. Jasti said he would take up the issue with appropriate authorities.
He said all formulations containing these bulk drugs also came under the price control." There is a price control on certain formulations too resulting in dual control of the end prices of the drugs," Venkat Jasti said.
The prices of important bulk drugs, including penicillin, tetracycline, sulphamethoxazole, insulin and aspirin are regulated by the government to make them affordable to the consumers.
The government considers the lowest price of a bulk drug as benchmark and fixes the final price. Jasti said this was not fair. The cost of production of all the units would not remain the same due to the different levels of investments made by the companies.