Considering the present economic burden on the people due to unprecedented rise in prices of fuel, cooking gas, edible oils and various other essential commodities, the government should reconsider the proposed hike in prices of nearly 800 drugs from the first day of the next fiscal. As per the decision of the National Pharmaceutical Pricing Authority, the prices of drugs which are on the national list of essential medicines, will go up by 10.7 per cent from April 1. The pharmaceutical pricing authority has taken this step after receiving several requests from drug manufactures to hike prices as the cost of raw materials and other ingredients has increased manifold, especially due to the pandemic situation. Drug companies argue that exorbitant prices of raw materials causes a huge financial burden on them, which they cannot bear for much longer; thus a hike in price is necessary. The decision will definitely bring relief to manufacturers, but will put extra burden on the common men and women, who are already troubled by erosion of the job market, reduced wages, price rise, etc.
While accepting the demands made by drug companies, pricing authorities should have kept in mind that the pharmaceutical business is different from other businesses, which are driven only by profitability. The same theory of profitability cannot be applied to drug manufacturing businesses as medicines are basic necessities. Medicines are needed to cure people of diseases which in turn helps in building a healthy society. Keeping the necessity of drugs in mind, the price authority control was established to check price rise of essential medicines. As a result, the Indian health sector was less expensive than the health sectors of other countries. This is why, the number of foreign nationals coming to India for treatment is increasing. The decision to hike drug prices will also be a major blow to the ever increasing medical tourism, which helps the country earn valuable foreign exchange revenue.
The Covid-19 pandemic has brought to light many areas wherein the Indian healthcare system needs to make rapid progress to become more efficient. Acknowledging healthcare deficiencies, the government has sanctioned a large amount of funding to boost the healthcare infrastructure in the country. Further, the government should strictly monitor and mediate the pharmaceutical industry to prevent the burden of drug price rise from falling on the people. Through tight fiscal management the government can control the price of medicines just as it did for fuel costs over the past four months. One can only hope that the government will understand the plight of the common people who are yet to recover from the hardships faced during the pandemic. Just as the pandemic appeared to be on its way out and the world was limping back to normalcy, then erupted the war between Russia and Ukraine, which has once again created uncertainty worldwide. At such a time, the government should work towards establishing a mechanism to ensure that essential medicines remain within the reach of the common people.