As different mechanisms to regulate the prices of essential drugs are being mooted for the consideration of the Group of Ministers (GoM) by stakeholders, the small scale sector has come up with a model which also has been forwarded to the GoM by the Department of Pharmaceuticals (DoP).

According to the proposal submitted by the Small and Medium Enterprises Pharma Industries Confederation (SMPIC), any company who is willing to print the MRP on labels shall give an undertaking and be registered on the website. This would help in arresting the escalating prices of medicines in the markets.

“The company will be entitled to use of a LOGO which the Government will simultaneously advertise in electronic media so that consumers will ask the doctors/retailers/quacks for medicines with that logo. Since medicines with logo have sufficient margin, none of the stakeholder will be averse to it. Only unnecessary profiteering will come to an end. If any company using the logo violates the MRP on website shall be liable to criminal prosecution to which it shall agree when seeking use of logo at the time of Registration,” according to the proposal.

Sources said the proposal came following the publication of the draft National Pharmaceutical Pricing Policy (NPPP) prepared by the DoP and the Department has taken note of the same and forwarded it also to the GoM which now examining the draft policy.

Meanwhile, the GoM headed by Agriculture Minister Sharad Pawar held another meeting on May 18 and decided to meet again next week after the conclusion of the Parliament session expected to be over by May 22.

The high-power panel took views from two non-government organisations (NGOs) – All India Drug Action Network (AIDAN) and Jan Swasthya Abhiyan (JSA)—apart from Member of Parliament Jyoti Mirdha.

“The redrafted policy should control prices of all essential medicines but should do so by fixing prices that are calculated on the basis of actual manufacturing costs and not on the prices that obtain in the pharma market today,” Amit Sengupta, joint convenor, JSA, said.