The snail's pace at which the Group of Ministers (GoM) on pharmaceutical policy led by Sharad Pawar is working at present has given hope to the pharmaceutical industry that the final policy may not be in place during the term of the present central government which will be in office till early 2009.
Though the industry is not fully happy with the present policy in which 74 drugs are under price control, there is a lurking fear that the government may bow to the pressures of the Union Chemicals Minister Ramvilas Paswan who is adamant on bringing more drugs under price control. So, the industry is happy in the current delay in announcing the new policy.
"It is a blessing in disguise. The more it is delayed the better for the industry," a senior pharma industrialist said. He said the industry prefers maintaining status quo to a new policy which may add new drugs under price control. The industry wants the same status for at least three years, he said.
There is a growing feeling within the pharma industry in the country that if the GoM fails to come out with its final recommendation in the next six or seven months, the announcement of the final policy may get further delayed as the government is unlikely to take any controversial decision on the eve of the crucial Lok Sabha election which is due in early 2009. The preparations for the election will start from early 2008.
Normally, no government takes any controversial decision one year before the general elections, as that will have a telling effect on the elections. In the case of pharma policy, the government is actually caught between the devil and deep sea. If the government gives in to the pressures of Paswan, who is known for his populist measures, to include more drugs under price control, the entire pharma industry will be up in arms against the government. Apart from the domestic players, the pharma industry associations in the US have also started airing their grouse against price control terming it as 'retrograde step'.
On the other hand, if the government decides to go against Paswan's wishes, it will be termed as anti-poor move of the government. Given the power that Paswan wields in the political firmament in the northern part of the country, it is unlikely, especially on the eve of a crucial general election in which each ally of the Congress party is counted.
Given the pace at which the GoM is working at present, it is unlikely that the government will be able to announce the policy in another six months. The 7-member GoM met only once during the almost six months of its constitution by Prime Minister on January 11 this year. That meeting also remained inconclusive. The GoM has a huge task ahead in hearing all the stake holders like the industry associations, NGOs and others.