The pharmaceutical industry is planning to intensely lobby with the Government to bring in a price monitoring mechanism, instead of the current price control regime. Pressure is also likely to put on the government for a roll back of the excise duty from the current 16 to 8 per cent.

According to informed sources, the Indian Pharmaceutical Alliance (IPA), Indian Dugs Manufacturers Association (IDMA), Organization of Pharmaceutical Producers of India (OPPI) and the Confederation of Indian Pharmaceutical Industry (CIPI-ssi) have decided to unanimously raise a few key issues which are critical to the survival of the Indian industry, especially the small and medium scale segment which constitute majority of the units.

Sources said the industry representatives have conveyed to the authorities that price monitoring could be acceptable, instead of price control at this juncture. This aspect is likely to be one among the major recommendations of the committee that looks into the controversial aspects of the proposed Pharmaceutical Policy 2006. With stiff opposition from various quarters, the Chemicals Ministry would find it tough to proceed with its proposed price control measures by adding 354 more essential drugs to the price control basket, they calculate.

They argue that the Indian pharmaceutical industry is evolving into a matured industry with ethical business practices, and price control could severally affect future growth of the industry. Agencies like NPPA could act as the monitoring agency and if pharma firms resort to overcharging, definitely the agency could involve by booking the culprits. It is also easy to collect data and monitor the prices as agencies like ORG tracks drug prices of more than 300 drugs, which constitutes more than 85 per cent of the drug market. Further, such mechanism could help in bringing more transparency and easing of red tapes and speedy regulatory clearances.

In a give and take policy, the industry is likely to lobby by offerings like earmarking a certain percentage of the production of units with above Rs.100 crore turnover as free supply to the Government's Below Poverty Line (BPL) healthcare programme, envisaged as a public-private partnership initiative, suggested in the pharmaceutical policy.

As against this, the industry will lobby for roll back of excise duty at least by next budget and excise duty exemption for units with a turnover unto Rs.5 crore. Though the Government had increased the turnover limit to Rs.3 crore from Rs.one crore, the MRP regime caused speedy exhaustion of the exemption limit immediately. If this were assured, the manufacturers would voluntarily restrict migration to excise free zones.

Further, the various industry associations have decided to voice together for survival and prosperity, rather than taking different stance according to the interests of each groups, which in the past weakened the intensity of their lobbying with the Government.