The central government is considering a one-time price hike for more than 300 essential medicines. Many believe this move is a result of the ongoing conflict in West Asia, which has caused the cost of manufacturing these drugs to shoot up. The list includes widely used medicines like Paracetamol, Amoxicillin, Azithromycin, Amlodipine, Atorvastatin, Dexamethasone, and Ascorbic Acid.
According to a recent report in 'Live Mint', the National Pharmaceutical Pricing Authority (NPPA), the Department of Pharmaceuticals, and the Commerce Ministry are currently in discussions. They are talking about whether the prices of some essential medicines can be temporarily increased. This is mainly to help companies cover their rising production costs.
Which medicines could get costlier?
The list of medicines being considered for a price hike includes common antibiotics like Amoxicillin and Azithromycin, and heart medicines like Amlodipine and Atorvastatin. It also includes painkillers like Paracetamol, steroids like Dexamethasone, and even vitamins like Ascorbic Acid.
The production of these medicines heavily depends on Active Pharmaceutical Ingredients (API) and solvents made from petrochemicals. The big problem is that India imports most of these essential components from other countries. The conflict in West Asia has seriously disrupted the supply chain. As a result, the prices of key raw materials like propylene, ammonia, and methanol have jumped by almost 200 to 300 percent. This has hit small and medium-sized drug manufacturing companies the hardest. Many are finding it difficult to continue production while dealing with these extra costs.
How much will the prices go up?
In this situation, industry organisations have asked the government to increase the current drug prices by 10 to 20 percent. They argue that if prices are not increased, they will face losses. This could disrupt the production of essential medicines and affect their supply in the market.
However, sources say the government does not want to make this price hike permanent. It is believed that the increased prices could be rolled back once the situation becomes normal and the cost and supply of raw materials stabilise. So, the Centre is looking to go for a temporary price hike based on this emergency situation.
