EX-FACTORY price on Medicine Packs to be made mandatory

New Delhi: The government is planning to make a mandatory rule for pharma companies to disclose the ex-factory price of the medicines with MRP on the packs of the medicines.

A notification to this effect is currently being prepared by the health ministry suggesting changes to the Drugs and Cosmetics Rules. If the move gets approval, the drug firms will have to declare the manufacturing price exclusive of taxes and all other costs.

While an official informed TOI that the notification is likely to be issued soon for comments from stakeholders, opposition against the move is already piling through

The pharmaceutical industry is reported to have shown the concern that the proposal of declaring the ex-factory cost on packs will be a disadvantage for them as the manufacturing cost and profit margins will available in public domain which ultimately benefit the global players. Such a move will not only put them in a competitibe disadvantage but also create a trust deficit among the general public as they may not understand the nuances behind the gap between ex-factory and retail prices.

Secretary-General, Indian Pharmaceutical Alliance, DG Shah told TOI, "This is a meaningless move by the government as it will not serve any purpose but only project the industry in a poor light. The layman, who does not understand the difference between the two, would assume that the industry is cheating with such a high MRP."

Government Officials, however, have justified the move stating that it is aimed at primarily controlling profit and trade margins and bring in more awareness among consumers.