Task Force to Explore Options other than Price Control for Achieving the Objective of Making Available Life-saving Drugs at Reasonable Prices

The Task Force recommends that price regulation should be on the basis of ‘Essentiality’ of the drug and it should be applied only to formulations and not to upstream products, such as bulk drugs. No effort should be made to impose a uniform price, and only a ceiling price should be indicated. The regulatory mechanism should be significantly strengthened both at the Centre and in the States. A process of active promotion of generic drugs should be put in place including mandatory debranding for selected drugs. A new legislation viz, Drugs and Therapeutics (Regulation) Act (DATA) should be enacted for price control on drugs. As a long term objective, the Task Force endorses the proposal made by the Planning Commission in the Mid-term Appraisal of the Tenth Five Year Plan to establish a National Authority on Drugs and Therapeutics (NADT). The Task Force recommends that the National List of Essential Medicines (NLEM) 2003 should form the basis of drugs for price control/monitoring.