same should only have a minor impact on gross margins during the quarter,” brokerage firm Nirmal Bang says.
Private manufacturers have not been keen to provide medicines that are under price cap. They say it does not help as the poor are still not able to afford them. “The problem is that India spends too little on healthcare,” writes Amir Ullah Khan, professor of economic policy at the Indian School of Business and the Nalsar University of Law, in the national daily
Instead of price control, he suggests that options like trade margin rationalisation, centralised procurement, social health insurance schemes, cross subsidisation and state financing of essential drugs should be used.
India has to keep the drug costs low. Its public spending on health is very low. It is unlikely that the country would be able to procure much if it buys at the private sector prices. Public sector pharmaceutical companies, therefore, become relevant as they can provide drugs at the cost price even after including the cost of pollution control.