By The Sampadak Express
In a significant development that could impact millions of diabetes, cancer, heart disease, and other patients, the prices of government-controlled medicines are set to rise. According to Business Today, the prices of essential drugs, including those for cancer, diabetes, heart diseases, and various antibiotics, are expected to increase by 1.7 percent in the coming months.
Reason Behind Price Hike
The decision to raise the prices of these medicines is largely influenced by the rising costs of raw materials and other manufacturing expenses. Rajiv Singhal, the General Secretary of the All India Organization of Chemists and Druggists (AIOCD), explained to Business Today that the price hike is expected to provide some relief to the pharmaceutical industry, which has been facing increased production costs.
Singhal also indicated that this price increase is an outcome of the economic pressures the pharmaceutical sector is grappling with, as the cost of raw materials and other essential inputs continues to climb.
When Will Price Increases Take Effect?
According to Singhal, the new prices may take two to three months to appear on the market. This delay is due to the fact that there are usually about 90 days of saleable medicines in the market at any given time. As a result, consumers may not feel the effects of the price increase immediately.
Violation of Pricing Rules by Pharma Companies
While the government regulates the prices of essential medicines, a recent study by the Parliamentary Standing Committee on Chemicals and Fertilizers has uncovered alarming details about repeated violations of pricing regulations by pharmaceutical companies. These companies have been found to be increasing the prices of medicines beyond the permissible limits set by the National Pharmaceutical Pricing Authority (NPPA), which is responsible for enforcing price controls.
The NPPA has identified 307 cases of violations by pharma companies, raising concerns over the enforcement of price controls in the industry. Under the Drugs (Price Control) Order (DPCO) of 2013, pharmaceutical companies are required to sell medicines at or below the maximum retail price (MRP) set by the NPPA, in addition to the applicable goods and services tax (GST).
Potential Savings from Price Ceilings
Despite these violations, the Indian government has also been working to ensure that prices for essential medicines remain affordable for the public. Earlier this month, the Ministry of Chemicals and Fertilizers revealed that the price ceilings set for medicines listed in the National List of Essential Medicines (NLEM) 2022 would result in significant savings for patients. According to reports, this price regulation could save patients an estimated Rs 3,788 crore annually.
In summary, while the pharmaceutical industry faces economic pressures that may lead to price hikes, regulators are continuing to monitor price controls and violations to ensure the protection of consumer interests.
However, the 1.7 percent increase in the prices of essential medicines will certainly affect patients with chronic conditions like diabetes, cancer, and heart disease, as well as those relying on life-saving antibiotics.
