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How NPPA allowed so much trade-margin on medicines despite downward price-revision?
It is beyond understanding how and why the National Pharmaceutical Pricing Authority (NPPA) under the Union Ministry of Chemicals allowed drug-companies to loot the customers when prices of some medicines have remained less than half in just four months with downward price-revision having been done two times till now.
'Amaryl 1 mg' having manufacturing date December 2015 had Maximum Retail Price (MRP) printed as rupees 132.08 per strip of 30 tablets. But thereafter it was initially downward revised at MRP of rupees 104.90. Now, the same medicine manufactured in April 2016 has MRP printed at rupees 60.15.

The big question is, why price-revision at rupees 60.15 was not done at a time when MRP was revised at rupees 104.90. NPPA should study manufacturing-prices of all the drugs in one go, and should announce downward price-revisions in one go rather than at intervals.

The NPAA should also study manufacturing-cost of generic medicines where many generic medicines are sold in wholesale-market at just about 22-per cent of printed MRP. Examples are 'Mecofol-plus' and 'Geomax-plus'.

Allowing such huge-trade margins of about 400-per cent on generic medicines kills the very purpose of making these medicines available at affordable prices in comparison to branded medicines of famous companies.

Since government-purchases are mostly for generic medicines, such huge trade-margins tend to induce corruption in purchases by government-hospitals/dispensaries etc.

(Subhash Chandra Agrawal is a noted RTI activist)

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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