The union minister for Chemicals and Fertilisers, Ram Vilas Paswan, has called for a meeting of all state finance and health ministers on August 3, 2004 to discuss the possibilities of a uniform MRP for drugs across the country. The minister's attempt would be to see if he could make the states agree to avoid all additional local taxes that are currently levied on medicines.

The minister's attempt is viewed with much skepticism, given the independent decision making powers of the states. Industry observers feel that the states will never agree upon any suggestion that can dig a hole in their revenue earnings. They are also surprised at the rationale behind such a move when VAT regime is so close. According to sources, the minister is likely to look for an administrative solution to the problem rather than a legal one. He would like to have a system where the government revenues won't suffer and the consumer interests are protected. This is possible only if pharmaceutical industry / trade can function within lesser profit / trade margins. The exact plans for the talks are yet to be clear.

The minister is known to be acting upon the numerous complaints he had received on the unreasonable profit margins enjoyed by the retail pharmacists. He had ordered the National Pharmaceutical Pricing Authority (NPPA), working under his Ministry, to conduct a thorough examination of the pricing mechanism of drugs. His refrain "if the companies could sell other products at the same printed price, why they could not sell drugs at uniform prices" is likely to be heard during the state ministers meeting as well.