The SME Pharma Industries Confederation (SPIC) has urged the prime minister to institute a judicial inquiry to ascertain how various government departments worked at cross purposes during the last some years to eliminate SSI pharma companies in the country which resulted in phenomenal rise in prices of medicines.

The lapses by the government departments are unpardonable in view of irreversible damage done to the industry. Pharma SSI, which provide affordable drugs in India, is sought to be eliminated regardless of revenue loss, unemployment and price rise being a consequence. Repeated requests for relief have been ignored despite Prime Ministerial intervention also in the case, the SPIC letter said.

"A judicial inquiry may be instituted to ascertain how various departments worked at cross purposes and caused the damage despite the Manifesto of UPA to provide affordable drugs to the common man," it further said.

Giving an example of government departments' laxity on the issue of price rise, SPIC said that Prednisolone acetate ophthalmic suspension 1 per cent (5ml) manufactured by Alcon- USA is sold at Rs 100 in the country. Earlier Allergan (Nicolas) has been producing same product with MRP of Rs 68 which is available in every drug store in the country.

It is shocking because Prednisolone is a Scheduled Drug and is under price control. Ceiling price of this product is Rs 9.48 as per NPPA S.O. 672(E). Local industry is printing this price on labels. But government has allowed import of thousands of such items carrying 10 times the MRP which is fleecing the consumer and simultaneously killing local industry. Unlike other commodities, higher priced medicines are sold the most because they provide margins for promotion, SPIC said.

Regarding the government policies that went against the interest of the SSIs resulting in price rise, the SPIC counted that anomalous MRP-based excise collection, Schedule M of Drugs Act, CDA Bill, fixed dose combinations issue, minimum turnover stipulation for SSIs to participate in government tenders, increase in fee for grant and renewal of licenses (which was increased five times and is surprisingly same for SSI and large units), amendment in Indian Pharmacopoeia (IP) and good laboratory practices (GLP). SPIC urged the prime minister to inquire into the intention of the departments in implementing each of these policies.