Ref : E&R/Press/2004/Pharma.39/JSD-DG

CERC Hails Paswan’s Initiative to Fix Prices of Pharma Products

Consumer Education and Research Centre (CERC), Ahmedabad, has hailed the initiative taken by Mr. Ram Vilas Paswan, Union Minister for Chemicals, Fertilizers and Steel, in the pricing of pharmaceuticals and particularly focusing on the large margin of profit between the wholesale price and the retail price (MRP).

CERC sent the Minister a statement spelling out the difference between the wholesale price at which the manufacturers sell the products to hospitals or wholesalers and the maximum retail price at which the medicine would be available to the customers from the chemist’s shop.

In any trade, the margin of profit and cost of distribution by and among the wholesalers, semi-wholesalers and retailers cannot be more than 20 per cent at the most. In case of pharmaceuticals, it is ranging from 200 to 600 per cent, CERC added.

CERC also pointed out that it had submitted this information to the National Pharmaceutical Pricing Authority (NPPA) two years ago. It was shocked and surprised to know the wide gap between the wholesale price and the MRP. But CERC did not hear of any action taken by the NPPA in this matter.

CERC offered all help to the Minister in this matter.

 

Date : 19/08/2004
Place : Ahmedabad

Pritee Shah
Editor
INSIGHT - The Consumer Magazine

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CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Sarkhej-Gandhinagar Highway, Ahmedabad - 380 054 (INDIA)
Phone: 079-27489945-46 Fax: 079-27489947
E-mail: cerc@wilnetonline.net
Web Site: http://www.cercindia.org
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