New Delhi, July 24: The members of the parliamentary consultative committee on fertilisers and chemicals on Friday came out in praise of the performance of the newly-initiated orgainsation, National Pharmaceutical Pricing Authority (NPPA).Union minister for chemicals and fertilisers Surjeet Singh Barnala informed that NPPA has fixed or revised the prices of seven bulk drugs and 497 formulation packs within a period of less than one year since its inception. It was noteworthy that no application was pending with NPPA for formulation pricing for more than two months. He said speedy disposal was possible because of the procedural improvement.
He said NPPA which was established on August 29, 1997, is now fully functional. It may be recalled that it has been entrusted with the task of updating the list of drugs under price control based on established criteria and guidelines. It also aims at bringing down the delay in processing applications for approval of prices to within two months for formulations andfour months for bulk drugs.
Replying to the queries of members, the minister stated that the pharmaceutical sector has performed fairly well with production increasing by about 650 per cent since 1981-82. The exports have made significant progress and at present more than Rs 4,000 crore worth drugs are exported in a year.
Allaying the anxiety about the forthcoming international patent regime, he said the government has given full hearing to the views of indigenous drug industry in this regard for appropriate representation before the world body. The Indian drug industry is on a strong footing with about 70 per cent requirement being met indigenously. The indigenous industry is also being protected against dumping by foreign companies through a mechanism with Commerce Ministry where affected companies bring such cases to its notice for consideration of levying appropriate duty on such imports.
The members appreciated NPPA's effort in bringing down the prices of three bulk drugs and fixing the prices ofthree for the first time. Out of 497 formulations, the prices of 292 have been notified on suo moto basis and that of 205 based on applications. Members were happy that the prices of 276 formulations were reduced and there was increase in respect of 153. Besides, the members wanted strengthening of the enforcement and monitoring mechanism of drug prices, availability and quality control.
The members felt that for effective enforcement of Drug Control Order at regional and local levels, NPPA like bodies could be formed. The participation of consumer fora in price fixation was also emphasised. The members also wanted that the prices of imported drugs need better scrutiny to check inflated quoting. This is necessary particularly in the case of drugs which are life saving and are not produced in India to prevent exploitation of consumers especially the poor.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.