Indian Drug Firms Call For Price Control Relaxation

India's pharmaceutical industry is drawing up proposals for an easing ofdrug prices and other controls, with the alternative of complete price decontrol in exchange for the free supply of certain drugs to the government health service. Industry sources have said the value of the free supply could amount to 5%-10% of the industry's turnover of $175 million to $350 million.

The basis of the proposal is that the free supplies will guarantee the availability of cheap drugs to th poorest sections of the population. The joint secretary of the Ministry of Chemical responsible for drug issues, Shantanu Consul, said he had not yet received the industry proposals but added that if the present system of controls was found to be unsatisfactory, "it was necessary to look for alternatives." He said the decisions as to what drugs would go on the free list and the question of quantity could pose problems.