E-DRUG: Drug prices in India
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http://www.indianexpress.com/printerFriendly/25020.html
THE INDIAN EXPRESS
New pricing regime sends drug prices on upward spiral
PIA CHANDAVARKAR
Posted online: Thursday, March 08, 2007 at 0000 hrs IST
PUNE, MARCH 7
[copied as fair use]
When Shanta Joshi stopped by her neighbourhood drugstore this week to buy her monthly quota of diabetes medicine; she was shocked by the sharp rise in prices over her previous purchase a month ago. She was told that the drugs were now being sold at the maximum retail price (MRP) inclusive of all taxes, against the earlier practice of selling at the retail price plus local taxes.
With pharmaceutical companies now beginning to print uniform MRP on all their products distributed across the country, consumers in Maharashtra are dishing out extra money for some vital medicine for ailments like diabetes and high blood pressure.
In the earlier regime, drugs were sold as per the printed retail price plus local taxes, added extra by the retailer. The levy included various duties like central and state sales tax and the octroi levied by the municipal authority, which vary both within and outside the state.
Averaging out the different tax rates in different states for a nationally uniform MRP can mean a rise in prices by 3-4 per cent, especially in those states where tax rates are low, points out Tushar Changedia, a chemist. But many companies have hiked their prices way beyond that.
When The Indian Express compared four fast-moving drugs manufactured by leading pharma companies with respect to their retail price and the newly introduced MRP, it found that barring exceptions like Ranbaxy products, most medicines cost more by 3 to 20 per cent.
In the case of Gujarat-based pharmaceutical company Torrent, for example, the price of Betacard 50 mg (meant for high blood pressure) has risen from Rs 33.90 to 40.70, or by 20 per cent. Other Torrent products that showed a sharp upward movement were Dilzem SR 90 (11 per cent), and Nikoran 5 mg (9 per cent).
In case of Hyderabad-based Dr Reddys Lab, prices of products like Reclide 80 mg and Nise rose by about 12 per cent. Stamlo Beta also increased by 6 per cent. Another company which has rasied prices, though not as sharply, is Cipla - by up to 7 per cent.
Earlier, since the local taxes differed from retailer to retailer, many customers felt cheated. With the MRP, they can now be sure that they are paying a uniform price, said drug storeowner Sanjay Sancheti.
But the MRP, too, is subject to changes. Many retail store chains like Subhiksha, TruMart and others are charging 10-15 per cent below the MRP, since part of the margin passed on from distributor to retailer goes to the consumer, said Suryakant Pathak, president of consumer group Grahak Peth.
This brings to question the definition of what an MRP is. The fact that this is possible means that MRP is not fixed and can be negotiated, said Manjiri Apte, who works for a local magazine.
Consumers here feel there is a need for greater transparency in drug pricing. There should be a website that provides details of the all the tax rates applicable to medicines, so that there can be no scope for price rigging, said research chemist Sharad Kagal.
From
Dr Gopal Dabade,
57, Tejaswinagar
Dharwad 580002
INDIA
"Dr Gopal Dabade" <dabadedr@yahoo.com>
[Please could contributors include the generic name of drugs they discuss by local trade name. We are not familiar with these trade names and it would be good to know what the drugs are. BS]