Protesting against the recently amended pricing policy of the national pharmaceutical pricing authority (NPPA) and the draft guidelines issued on good distribution practices (GDP), the members of the All India Chemists and Distributors Federation (AICDF) will hold an agitation at Jantar Mantar in New Delhi on March 15.
In a memorandum to the union health minister informing him of their protest, the Federation secretary, Joydeep Sarkar, said the traders’ body feels that the amendments and proposals in the pricing policies of NPPA are inclined towards the welfare of the manufacturers and importers with least consideration for the traders. As per the new policy, the NPPA favours a market based pricing in which the traders have no role in determining the prices of drugs. He said his organisation demands a ‘cost based pricing’ strategy which can help the common people even when there is increase in the number of scheduled or controlled products.
In the letter, AICDF alleges that the market based pricing method for controlled category of drugs has been suggested because of a conspiracy between manufacturers and a section of the bureaucrats. The method is irrational, illogical and impractical and is always against the interest of the masses. The organisation proposes establishment of PPP model of pharmacies which can provide medicines at low cost to the poor.
While talking to Pharmabiz, the president of the Federation, Kailash Gupta said about 25000 retailers in New Delhi will participate in the protest rally on March 15 by shutting down their retail pharmacies for 24 hours on the day. He further said guidelines of the union government are threatening the survival of the traders. The organisation demands an increase in profit margin for both wholesalers and retailers.
While appreciating the union government’s decision to include 348 molecules in the scheduled category, the memorandum says, if the new policy is implemented, the prices of drugs including those of essential drugs under scheduled categories will go up. The traders argue that since these molecules were selected in 2003, several of these are now obsolete and non-moving because of changes in the modern therapeutic methods. They further alleged that there is possibility for the manufacturers to change the nature of formulations from drug to dietary supplements in order to gain huge profit margin even if the guidelines are implemented.
Quoting database furnished by NPPA, AICDF alleges that until December 2012, only 9.30 per cent of the penalties have been recovered from the manufacturers for overcharging prices of formulations. The big companies have escaped the fines, and even some companies have hiked the prices of non-scheduled formulations more than the stipulated 10 per cent without the knowledge of the authorities.
According to them, the retailers and wholesalers are getting a profit margin of 20 per cent and 10 per cent respectively. They demand a hike of four per cent and eight per cent profit margin for the retailers and wholesalers.
On November 22 last year, the union government cleared the pricing policy of the NPPA to bring 348 essential drugs under price control with a view to reduce their prices. But against this decision of the government, a case is going on in the Supreme Court.