The Indian Drugs Manufacturers Association (IDMA) has urged the Central Government to go back from its decision to assess excise duty based on drug MRP.

The association wanted the notification issued by the Finance Ministry to be kept in abeyance and re-notify with necessary changes. In a representation given to the chemicals and fertilizers ministry, IDMA warned the government that the notification in its present form could lead to severe shortage of drugs in the country. "The prices of the drugs may increase by 10 per cent, the drugs SSIs would be seriously affected and the outsourcing jobs would come to a halt," IDMA has indicated.

Calling for wider consultations on the matter, IDMA wanted the industry associations' woes to be mitigated. The association has pointed out that the abatement of 35 per cent that has been given to the industry is grossly insufficient to meet the actual cost of manufacturing and marketing the drug in the country.