The Parliamentary Standing Committee on Chemicals and Fertilizers has called for an inter-ministerial coordination to set up a mechanism to closely monitor the drug price behaviour in the wake of the amendments in the Patents Law and take appropriate measures for enforcing proper moderations. It also wanted the government to fix ceiling on trade margins of drugs that are currently available.

Noting that the product patent regime in pharmaceutical sector may alter the prices of drugs in the country, the committee wanted the government to keep the prices of drugs within the reach of common man. In its latest report, the committee preferred greater emphasis on drug research & development and wanted the Department of Chemicals and Fertilizers to extend all support to the pharmaceutical industry.

The committee felt that the instances of shortages and charging of high prices are rampant in the country, particularly in rural areas, in the case of drugs and formulations and wanted a closer scrutiny. It recommended for an effective monitoring of prices of drugs that are not covered under the Price Control Order.

The committee has endorsed the interim recommendations of the Sandhu Committee for introducing a system of price negotiations for the new patented drugs, compounding of offences under the Essential Commodities Act, establishment of DPCO Cell at States etc. It wanted the department to take appropriate follow-up action on those recommendations.

Lauding the efforts of the Pharmaceutical Export Promotion Cell (PEPC) that led to the boost in drug exports, the committee wanted consistent efforts to be made for increasing export of drugs and pharmaceuticals and to establish India a global leader in pharma sector. Increased budgetary allocation has also been recommended.

In a specific mention on National Institute of Pharmaceutical Education & Research (NIPER), the committee observed that the good efforts of the institution to develop drugs for neglected diseases like Tuberculosis, Malaria and Leishmania is yet to fructify. Stressing the importance of research in such areas where multinational pharmaceutical companies/other companies have limited interest, it called for concerted efforts to develop and discover new drugs in such diseases.

The Committee also found that there has been under utilization of funds allotted to agencies like National Pharmaceutical Pricing Authority and Hindustan Antibiotics Limited in 2004-'05. It wanted the reasons for under-utilisation of budgetary allocations to be thoroughly analysed and remedial measures taken for achieving the targets in the remaining two years of Plan.