Apex chambers Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) have flayed the proposed move to increase the span of price control over drugs. Terming the provisions to increase price control span as a retrogressive step, CII and FICCI wanted an urgent review of the government move.
While CII has sought an appointment with the Commerce Minister to represent its case, FICCI is known to have urged the Planning Commission to look into the matter.
"The industry is concerned by the recent reports which indicate that the proposed National Drug Pricing Policy may extend additional price control to about 350 drugs list in the National List of Essential Medicines (NLEM) 2003. Breaking away from the tradition of gradual reduction in the span of control, the new proposed policy aims to increase the span of control. This would be more damaging to the leading players in the industry. This will surely erode the ability of the national companies to invest in research and development, penetrate the global generic markets and will also compromise overseas price realization," CII has observed.
FICCI feels that the proposed policy is regressive, would result in massive increase in span of control, is a disservice to public health, would spur counterfeiting, have adverse impact on the emergence of India as global generics player, have ramifications on export realization, hurt the potential for drug discovery and have an adverse impact on government revenues.
"The objective of price control can never be the slashing of price without ensuring a reasonable return to the manufacturer. We therefore submit that in view of widespread apprehension of the industry on the potential adverse impact, no decision should be taken without consultations with all stakeholders and a careful and thorough study of the extent of the impact on the economy, industry and the consequences to public health," FICCI has said.