The Drugs (Prices
Control) Order, 1995 does not make and distinction between life
saving drugs and other drugs. In accordance with the provisions
of the said Order, the National Pharmaceutical Pricing Authority
(NPPA) fixes prices of the drugs listed in its first schedule
and formulations based thereon. Prices of non-Scheduled formulations
are fixed by the manufacturers themselves keeping in view the
various factors like cost of production, marketing/selling expenses,
R&D expenses, trade commission, market competition, product
innovation, product quality etc.
An analysis
of data (December 1998-December 2001) of ORG-MARG, which publishes
monthly reports of "Retail Store Audit-Market for Pharmaceutical
Products in India" revealed the following position with
respect to prices of medicines having a minimum annual sale
value of Rs. 1.00 crore.
- Price of 2557 such medicines
which appeared during all three years of 1999 to 2001 were
analysed.
- The prices of 54 per cent, 51
per cent and 49 per cent of the above medicines have gone
up during the years 1999,2000 and 2001 respectively.
- The prices of 12 per cent, 8per
cent and 9 per cent of the above medicines have declined during
the same period respectively.
- The prices of 34 per cent, 41
per cent and 42 per cent of the above medicines have remained
same during the same period respectively.
This information
was given by the Minister of State for Chemicals & fertilizers,
Dr. Chhattra Pal Singh, in a written reply to a question in
the Rajya Sabha today.
