Indian Drug Prices Discussed In Parliament

Drug prices in India increased 1.7% during the period April 1996 toMarch 1997, compared to 5.9% for the prices of all commodities, Chemical and Fertilizers Minister M Arunachalam told the Lower House of Parliament earlier this month.

Mr Arunachalam said the analysis of causes of higher medicines prices, both those under and outside price controls, revealed the increase in the prices of several other inputs as prime factors. Among these are bulk drugs, excipients, packaging, exchange rate fluctuations for imported items, changes in excise duty and a hike in Maximum Allowable Post-manufacturing Expenses.

No Plans To Cut Prices He also informed the House that there was no pending proposal with the government to slash the prices of bulk drugs at present. Currently, bulk drugs are being sold at much higher prices than the notified rates. Notified prices are the maximum selling prices of products, and Mr Arunachalam said that these could be reduced by the government whenever it comes to its notice that the input costs had substantially decreased.