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‘Daylight dacoity’: As top court hears petitions, here’s how medicines are priced in India
Developing
In Short: The Supreme Court bench criticized the markup between the price at which medicines reach retailers and the price printed on the pack, calling it 'broad daylight dacoity' with patients.
The Supreme Court on Tuesday described the markup between the price at which medicines reach retailers and the price printed on the pack as 'carnage', akin to 'broad daylight dacoity' with patients. The bench, consisting of Justices Vikram Nath and Sandeep Mehta, questioned why the markup could be as high as ten times the rate at which medicines are provided to retailers.
The bench further asked the Centre why the 16% retailer margin under the Drugs (Prices Control) Order (DPCO), 2013, should not apply to all essential medicines. The petitions before the court seek regulation of drug prices, generic prescriptions, and medical devices.
The Essential Commodities Act, 1955, gives the Centre power over essential goods, including medicines, and is the primary framework governing medicine prices in India.
The court's remarks highlight the concern over the lack of transparency and regulation in the pricing of essential medicines, with the bench expressing surprise at the silence of authorities on the issue.
What's still developing
- Questioning the difference, the bench said, “The MRP is 10 times the rate at which it is provided to the retailers. If this is not extortion, then what is it?… That’s absolute rampage, carnage, broad daylight dacoity… It is very surprising that the authorities who are supposed to take a decision on this are absolutely silent. We don’t need to spell out the reason for that,” the bench said.
Sources
- The Indian Expresslink