RSS outfit writes to PM Modi, accuses Niti Aayog, bureaucrats of meddling with drug pricing

In a strongly-worded letter to Prime Minister Narendra Modi, RSS affiliate Swadeshi Jagran Manch (SJM) has alleged that several government departments including Niti Aayog are working towards systematically dismantling drug price control system to benefit pharmaceutical companies.

SJM said it is deeply concerned that prices of most essential medicines are too high for the majority of the people and contribute towards the impoverishment of millions each year. “Pharmaceutical companies marketing these medicines are making profits in the range of 500- 4000% and that too after imposing price controls,” SJM said in the letter.

“This is because the current formula for arriving at a ceiling price is an irrational market based formula that legitimises profiteering and which is against the interest of the people,” it added.

The letter, reviewed by Moneycontrol, written by SJM's All India co-convenor Ashwani Mahajan accused bureaucrats of three ministries — Health and Family Welfare, Commerce and Industry and Chemicals and Fertilisers  and Niti Aayog — colluding with pharmaceutical industry.

“So powerful has the hold of the pharmaceutical companies been that the secretaries and joint secretaries of three ministries namely Health and Family Welfare, Commerce and Industry through DIPP and Chemicals and Fertilizers through Department of Pharmaceuticals (DOP) are now holding meetings along with the NITI Aayog to completely dismantle the system of price control,” the letter states.

SJM praised drug price regulator the National Pharmaceutical Pricing Authority (NPPA) for capping the stent prices and the prices of several medicines for cardiovascular disease and diabetes, using special powers vested with the government to act in the public interest under the DPCO 2013.

“These activities have not been liked by the above mentioned ministries and secretaries, particularly the DOP and plans are afoot to sabotage the NPPA, possibly by dismantling it altogether,” SJM said.

“It is now known that, ironically, a "Committee for Ensuring Enhanced Accessibility of Drugs to the Poor" has been formed on March 31, 2017 and chaired by the Joint Secretary (Pharma Policy), DOP. Its real purpose is to pander to the pharmaceutical companies, undermine the good work done by the NPPA and ultimately to abort any attempt to do effective price control and make medicine affordable in India,” SJM said.

SJM also accused Niti Aayog of aligning with the vested interests in the relevant ministries to dismantle the regime of price control and wind up the NPPA.

“It has also come to our notice that the NITI Aayog has contacted representative of various ministries with the intention of framing a new drug policy and revamping the DPCO 2013. It is our understanding that this issue is sub-judice before the Supreme Court, wherein the final hearing is underway. While the Supreme Court is already seized of the matter and the price fixation methodology, it is not appropriate for the government to make further modifications in the drug policy and DPCO 2013 to suit the ends of the pharmaceutical industry and to the detriment of the poor of this country,” it alleged.

SJM asked the government to strengthen NPPA and make it an autonomous body rather than leaving it as DOP's subordinate agency.

The letter follows Modi’s recent statements where he said the government is contemplating a law to make it mandatory for doctors to use generic names to prescribe drugs, a move widely seen as part of series of steps the government is taking to make healthcare more affordable.

After coming to power the Narendra Modi-led government has initiated series of measures including bringing hundreds of drug formulation under price control, fixing prices coronary stents and promoting generic drugs through Jan Aushadhi stores.

SJM is said to have been playing an active role in shaping Modi’s economic policies. SJM also played an important role in forcing the government intervention to fix royalty charges in Monsanto BT cotton case.