Anomalies in Drug Prices and Quality Control

Anomalies in Drug Prices and Quality Control P S Agarwal P K Ramachandran B V Rangarao Drug price indices in the developed countries have been falling when static groups of drugs are considered, though for the industry as a whole the price indices have risen due to the discovery and introduction of new drugs. In India, however, the drug price index calculated on the basis of the prices of a static group of drugs had risen by 41.9 points by 1970-71 with 1961-62 as the base. The rise was sharp after 1965-66 which, by a remarkable coincidence, was also the period when the Government of India referred the costs and prices of a few selected drugs to the Tariff Commission for study. The highest annual increase of 12 points occurred in 1970-71 with the announcement of the Drug Prices Control Order.