Prices of 60 essential drugs increased again; this time by 40 percent
Prices of 60 drugs and medicines have been raised, for the second time in two months with effect from April 28 (Thursday), according to a gazette notification issued by the Health Ministry.
The 60 items in the gazetted category come under a ‘ Maximum Retail Price’ ( MRP) and their prices have been increased as both the state and private sector hospitals braced for a shortage of essential medicines.
These wide- ranging medicines include antibiotics (crucial in the treatment of infections) ranging from routine to high-end varieties; an anti-viral, anti-fungal and worm treatment drug in each category; drugs given for high blood pressure, heart failure, to control diabetes (blood sugar), to reduce cholesterol, to thin the blood (blood-thinning drugs); steroids (also known as wonder drugs); non-steroidal anti-inflammatory drugs ( NSAIDS); pain- killers; anti-seizure drugs; psychiatric and also neurological drugs (including a drug given for migraine); gastritis drugs; anti-asthmatic drugs; hormonal drugs ( including thyroxine); and even the simple fever-reducing paracetamol.
These medicines are in the form of tablets, capsules, oral suspensions, inhalers and injections.
The initial price-hike of 29% of these 60 gazetted drugs came in midMarch and the second 40% increase on Thursday.
“The reason for the two price hikes were dollar-rate fluctuations. In March, we allowed the increase because the US$ was at Rs. 255 and once again we allowed an increase because now the dollar is Rs. 350,” a National Medicines Regulatory Authority (NMRA) source said.
The Sunday Times understands that there have been intense discussions over a suggestion by the Health Minister that the MRP should be removed on a request by drug-importers who have said that there would be a drug shortage. The NMRA’s Pricing Committee had voiced strong objections to such scrapping of the MRP at a hurriedly-summoned meeting on Monday (April 25), on the grounds that drug-importers would allow prices to sky-rocket to make unreasonably huge profit margins.
The Minister had also indicated that if the MRP is not scrapped the drug-importers were demanding a 90% mark-up on these essential medicines to which the Pricing Committee had pointed out that no essential commodity was ever given a 90% mark-up.
When the Minister raised issue over medicinal shortages, the Sunday Times understands that the Pricing Committee had informed him that the shortages were due to the lack of dollars for importers to open Letters of Credit and not due to the price control. It had also stated that the NMRA had recommended price hikes on several occasions considering the devaluation of the rupee.
The Pricing Committee had also pointed out other measures that could be taken to ensure the availability of medicines. These measures included the importation of essentials and stoppage of imports of unnecessary medicinal products. Agreeing with the Pricing Committee, the Minister had requested it to submit what was discussed in writing. This had been done the same day, it is learnt.
Meanwhile, with regard to non-gazetted drugs, there has been a 20% increase in prices on April 8 and an earlier price-hike on March 11.
According to the gazette issued on Friday, every trader, distributor, pharmacist, medical practitioner, dentist, veterinary surgeon and medical institution, including a private medical institution or pharmacy shall maintain the price of the medicines given in a scheduled list at the MRP or revised retail price whichever is less.