With the stakeholders sticking to divergent views, finding an amicable path on the price control issue is going to be a tough task for Group of Ministers (GoM) which has started taking the feedbacks from the industry and others.
The second meeting of the GoM, held here on Monday, took note of the views expressed by the industry organisations and decided to continue the process of consultations on Friday, involving the non-government organisations.
According to the information, the Organisation of Pharmaceutical Producers of India (OPPI) which largely represents the multinational companies, argued for the market-based costing mechanism as the suitable model. In its presentation before the GoM, the organisation stuck to the model as suggested initially by the Department of Pharmaceuticals (DoP) in the draft policy. As per this formula, the average price of the three best selling brands will be fixed as the MRP.
However, the Indian Pharmaceutical Alliance (IPA) has climbed down on their earlier stand of market-based pricing formula. In its presentation to the GoM, the IPA suggested a combination of three models as suggested by the PM’s Economic Advisory Council.
The PM’s panel had suggested cost-based pricing for drugs with `insufficient competition’ with a mark up for the companies and for drugs being procured by the government, the price may be fixed based on the tenders. For the remaining medicines, retail price may be fixed at either 1.25 times the median price of a particular drug or the price which 80 per cent of the consumers are paying.
All India Chemist and Distributors Federation (AICDF) which also met the GoM urged the panel not to deviate from the cost-based pricing mechanism. While presenting its case, the AICDF said there was huge difference between the prices of medicines in different brands. The difference was so high upto even 3000 percent, the organisation said, citing the prices of anti-cancer medicines ranging from Rs.60 to Rs.1986 for the same dose.
Though the GoM, headed by Agriculture Minister Sharad Pawar, would continue to hear the views of the NGOs also in its next meeting scheduled on Friday, finding a solution which would appeal different stakeholders would be a tough job.
Speaking to reporters after the meeting, Pawar said, “We have not started discussing the basic issues because we are just giving an opportunity to others to present their views.” He added at the next meeting, too, stakeholders would give their feedback.
The meeting was attended by Minister of Health and Family Welfare Ghulam Nabi Azad, Commerce and Industry Minister Anand Sharma, Minister of State for Chemicals and Fertilisers Shrikant Kumar Jena and Planning Commission Deputy Chairman Montek Singh Ahluwalia.