The price decontrol policies in the nineteen nineties is thought to have led to a 40% rise in drug prices between 1996 and 2006, according to a Planning Commission Expert Group. During this period, the prices of controlled drugs increased by mere 0.02%, while drugs in the EDL (Essential Drug List) rose by 15%. Drugs that did not fall into either of these categories  were subject to a 137% price rise. The differences in the prices of the cheapest and most expensive brands could be around 1000%, and the difference between the procurement and market price could vary from 100% and 5000%. The Committee recommended controlling prices of all EDL formulations.

The market was flooded with irrational, non-essential and hazardous drugs, the Committee also noted. According to a DCGI estimate, 46 FDC (Fixed Dose Combination) drugs that have been banned continue to be marketed. It called for Standard Treatment Guidelines and  use only of rational formulations, and called for a ban of aggressive marketing practices and incentives given to doctors in this regard.  

 

SOURCE: Times of India