The Union chemicals & fertilisers minister seems to have made up his mind to come out with the new policy with price control covering 354 drugs. Now, he is trying to get feedback on the policy draft from other concerned ministries. The minister has made his point quite clear through the press last week when he said that the industry should stop pursuing its narrow goals and accept the policy proposal in larger national interest. Explaining the ministry's stand he said that the proposal was the only option left to him as it had to abide by the Supreme Court order to incorporate all essential medicines under price control. Supreme Court's direction is in the light of the prevailing high prices of a large number of drugs which are currently outside price control. And the minister has tried to convince the industry by stating that the span of price control will go up by only 8 per cent although the number of drugs under control is going to be 354 from the current level of 74. Therefore, industry leaders should not get unduly perturbed. Besides, the policy provides for an increased MAPE of 150 per cent on the ex factory cost of controlled drugs. One should also take note that the total number of drugs marketed in the country today is close to 600 and the sales value of drugs other than the proposed 354 is far higher. Paswan's span of control justification could be based on this assumption.

Industry's main objection is against the expansion of price control to 354 drugs. Its leaders fear that with 354 drugs under control, bureaucratic grip on the industry could be much more tight than what exists today. Industry may also be forced to be more transparent. It is true that NPPA now takes more time to grant price revision of formulations when bulk drug prices and other costs go up. Then, that is also the case when the bulk prices and other costs fall. IDMA, OPPI and IPA have already registered their protests against the move to widen the control. Last week, Confederation of Indian Industry joined the bandwagon by trying to scare and blackmail Paswan's ministry by hinting at discontinuation of production of certain essential drugs, threat to investment in R&D and delay in introduction of new drugs if more drugs are brought under control. It is quite unlikely that the minister may take these routine threats seriously. The government determined stand to have price control over life saving drugs is understandable considering the essentiality of this class of products to the common man. Price control used to be restricted mainly to infectives, analgesics, anti-malarials, anti-TB drugs, dysentery drugs and vitamins in the earlier policies. But, the disease profile of the country has changed dramatically in the last 10 years. Drugs for treating diseases like cardiovascular problems, diabetic, cancer and ulcer are also used by large number of middle class and poor people these days. Most of these drugs are outside price control in India and they are priced quite high in the market today. Unfortunately, the pharma companies do not follow any voluntary price restraint on these life saving drugs. Pharma trade, on the other hand, stock and sell only the expensive brands in all these therapeutic categories. Of course, there are a few companies which are selling essential drugs at lower prices than multinationals and top Indian companies. But their efforts are being defeated by the trade by not stocking them. Paswan has to take note of this unethical practice of the trade also to make the policy of price control meaningful.