Press Statement

The Union Cabinet has approved ‘Pharmaceuticals Policy- 2002’ which is a major assault the people for their access to essential drugs. Earlier, the Ministry of Chemicals & Fertilisers secretly circulated a document ‘Pharmaceutical Policy-2001’ where it was found that the Govt. has solely considered the interest of the multinational drug companies. The document has now been renamed and approved as policy.

Earlier, the Ministry formed two committees namely-Pharmaceuticals Research & Development Committee and Drug Prices Review Committee. The policy of the Govt is based only on the recommendations of these two Committees. Therefore the policy has failed from becoming a comprehensive and updated. The policy has neglected the vital area of rational use of drugs, quality control, availability of essential drugs, etc. It has dealt with mainly prices and to provide changes to suit the requirements of WTO Agreement.

Already, due to several other decisions of the Govt. of India Drug policy had been adversely affected. The Govt abolished industrial licensing, allowed 100 per cent foreign investment, liberal import and no restriction on foreign technology. These have caused a serious situation to the self-reliant position of drug industry in India. Import of finished formulation has increase to 420 per cent than the last year amounting to Rs.900 crores annually. Many Indian bulk drug manufacturers have closed their production units failing to compete imported drugs. Almost all the multinational drug companies also have closed their production units so that the country is compelled to import from their parent country. A situation of de-industrialisation has happened in pharmaceutical industry. These factors are completely ignored in the policy.

It is beyond any reasoning that when prices of drug are sharply rising, the Govt. decided to virtually withdraw control on prices. In the last three years prices of essential drugs rose to the extent of 100 per cent for controlled category of drugs and in the uncontrolled area it has been to 300 percent. In reality, prices of drugs can be kept much low. The large companies like Ranbaxy, Alembic, Cipla, etc are selling drugs in branded generic where the retail prices are kept same as branded drugs but trade margin is offered to a wide range from 300 percent to 1000 percent. This shows that the drugs can really be sold at much low price. But no real benefit is reaching to the consumers. On the contrary, new drugs are aggressively promoted by the drug companies to replace the existing effective drugs. These new drugs are highly expensive therefore much profitable. Many essential drugs are also not available in the market which forces people to buy these expensive new drugs which do not have much advantage over the conventional drugs.

While preparing the policy the Govt. considered that the Indian Patents Act, 1970 would be drastically changed. They have remain ruthless to consider that the patent regime envisaged would lift prices of all patented drugs to the level of U.K. or U.S.A. It is not unknown to the Govt. even in the developed countries control on drug prices exist direct or indirect way. The changes declared would immediately hike prices of many existing drugs. For example, single brand of drug selling more than Rs. 4.00 crores annually so far came under price control, but the policy declared to lift this limit to Rs. 25 crores annually. This would immediately push 40 highest selling drugs out of price control. On the other side the policy says that control of prices would be kept only on 32 drugs. Which means that the DPCO would become notional only.

This policy has not considered the fact that the market is flooded with large amount of fake and spurious drugs. Most of the companies sell drugs with undeclared extra trade discounts resulting to virtual black marketing of drugs. It was confessed by the Govt. and they could not deny the need of enquiry by CBI. But no remedial measure is proposed in the policy.

Our Federation in its General Council meeting held at Bangalore 3-5 February have decided to campaign against the anti-people, pro-multinational ploicy of the Govt.through nation wide campaign and shall collect one crore signature from the people.

-Amitava Guha, Joint General Secretary

* This statement being sent through computer, no signature could be made.