New MRP label on drugs mandatory from July

New Delhi: The printing of maximum retail price (MRP), inclusive of all taxes, on all drugs and medicines in the country will become mandatory from July 1, the Minister for Chemicals, Fertiliser and Steel, Mr Ram Vilas Paswan, said here today.

The Minister said that the draft finalisation of the new drug policy is almost ready and it would be sent to all Ministries and Departments for their comments by June 15. Thereafter, it would be placed before the Cabinet for its approval. This would be followed by bi-lingual printing on medicine packs, he said.

'From October 2 this year, it would become mandatory for all drug manufacturers to print the price, name of the manufacturer and its date of expiry in both Hindi and English for the benefit of the consumers,' Mr Paswan said.

He said that the new drug policy would aim to bring in uniformity in pricing and the government is working on various solutions like fixation of maximum commission/margins of dealers as well as retailers.

'It has been suggested that for generic drugs, the wholesale margin is fixed at 15 per cent and retail margin at 35 per cent on the price at the first point of sale,' he said.

Steel R&D mission


The Minister also said that the Steel Ministry is setting up Rs 50 crore worth Steel Research and Development Mission to revitalise the existing centres of research and development and undertake basic and applied research of national importance in iron and steel sector.

Addressing a press conference, Mr Paswan said the merger of Nilachal Ispat Nigam Ltd with SAIL was under way as recommended by the Committee of Secretaries and that BRPSE has recommended financial restructuring package for MECON involving support in the form of equity infusion to the tune of Rs 100 crore.

The Minister said that to meet the shortfall in fertiliser subsidy for the current year, the Government required an additional amount of Rs 14,322 crore.

According to estimates, fertiliser subsidy would cost the Government Rs 25,661 crore this year. Besides, the Government has the previous liability of paying Rs 5,906 crore towards subsidy. As a result, the total fund that would be required to meet the subsidy element on fertiliser will be around Rs 31,575 crore while the budgetary provision is just Rs 17,252 crore, he added. Mr Paswan said that the Ministry would write to the Prime Minister to apprise him about the subsidy and seek Government's support to this sector.