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GoM meet fails to make any headway on pharma policy
Our Bureau, New Delhi | Thursday, September 13, 2007, 08:00 Hrs  [IST]

With the industry and the Chemicals Ministry sticking to their stands in the tug-of-war on price control issue, the much-awaited second meeting of the Group of Ministers (GoM) on the national pharmaceutical policy has failed to make any headway and decided to meet again soon.

At the long meeting ended here last night, the delegates from the industry associations and consumer bodies made presentations before the seven-member elite panel headed by Food and Agriculture Minister Sharad Pawar. As the industry opposed the proposed price control mechanism to cover 354 drugs as drafted by the Chemicals Ministry, the panel did not make decisions on the crucial points, it is learnt.

The second meeting of the GoM was held five months after the first on April 10 amid indications that the panel would like to put the policy on fast track against the backdrop of fluid political conditions which sent signals of mid-term polls. The members, hence, suggested it should meet again at the earliest to finalise the policy.

Confederation of Indian Industry (CII) and Organisation of Pharmaceutical Producers of India (OPPI) were among those from the industry which stuck to its old stand of less price control. They told the panel that there were enough market-driven checks on the prices already, along with the official mechanism like NPPA and there was no need to expand the basket of drugs under price control.

However, consumer organisation such as CUTS Centre for Competition, Investment & Economic Regulation suggested that the Competition Act should be used to stem anti-competitive practices in the market, and medicines should be promoted in generic names rather than the brand name.

"The group of ministers heard the suggestions of various industry and consumer groups, and will meet again soon. We are bound under the Common Minimum Programme to make medicines more affordable for the masses," Union minister for chemicals Ram Vilas Paswan told newspersons.

He said that consumer groups are of the view that National Pharmaceutical Pricing Authority (NPPA) should be strengthened, while industry is seeking relaxation of the stringent guidelines.

"Competition in the market is enough to keep prices under check and ensure that the drugs are affordable. What needs to be ensured is that the drugs are made accessible," according to Ranbaxy CMD Malvinder Singh who attended the meeting
In November last year, the ministry of chemicals had sent the draft pharma policy to the Cabinet which increased the span of control on 354 essential medicines, besides the existing 74 drugs under Drug Price Control Order, 1995. And in January, the Prime Minister constituted the GoM.

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