The production of several essential drugs is likely to come to a halt in another six months if some measures are not taken to check the flaring up of bulk drug prices. A crisis situation has already emerged in the country with prices of a large number of bulk drugs rising more than 50 per cent during the last two months.

The prices of commonly used drugs like paracetamol, cloxacillin and amoxicillin have gone up substantially during last few weeks forcing not only small and medium scale units but also large companies to think of curtailing production.

"We have been getting the raw materials from China. But now the situation there has also changed because of the impending Olympic games. In and around the Olympic villages, the production of drugs has been stopped. Besides, the recent incidence of earthquake has gravely affected the production in certain regions of China. The one advantage for the Indian manufacturers was that China's drug intermediates were available in cheaper prices. The current crisis has affected not only us, but the Indian bulk-drug producers as well. They are not getting the intermediates needed for the bulk drug production. An overwhelming number of the chemical factories in China have been closed", president of the Pharmaceutical Manufacturers Association of Tamil Nadu, B Sethuraman said.

He added that the Pharmaceutical Manufacturers Association of Tamil Nadu will submit a proposal to the Union Government to find a solution to this burning issue.

He said the proposed Central Drug Authority (CDA) would not serve any purpose. Dr Mashelkar committee has not recommended for setting up the Central Drug Authority, but it suggested only for strengthening the Central Drug Administration. The only thing needed is to implement the Drug and Cosmetics Act properly and uniformly without any compromise.

If the authority comes into power, the whole pharmaceutical manufacturers in the country will be in a serious dilemma. For a new drug license, even the small scale unit has to approach the Delhi office or the zonal offices which will entail a host of sufferings to small scale producers. Currently, the state drug licensing authority is issuing the license and there is no problem in starting new production units, he said.

Meanwhile, an expert working with a health care NGO said the Central Drug Authority has to be formed at the earliest as it is the responsibility of the government to supply good quality medications to the people of the country. The government's primary target is the people and not the growth of the traders, he added.