If anyone has gained the most out of the price decontrol in medicines it is the Indian consumers. Prices have gone down substantially more in those medicines which are outside the price control exercised by the government than in those which are still under administered pricing. Further, Indian consumers have shown a tendency to switch over to those medicines which are under price decontrol.According to a study conducted by ACNielsen ORG MARG, average annual percentage fall in the prices of 207 therapeutic brands, which are outside the price control, was 3.5 per cent as compared to a fall of 1.5 per cent for 93 brands which are under administered pricing. The study was conducted for a period between 2001 and 2003.The matter of whether all drugs should be under price control is currently in the Supreme Court. The government challenged the Karnataka High Court’s order restraining the government’s powers in framing a drug policy which would push drugs outside the purview of price controls. Over the last few years the government has reduced the number of drugs under the price control from 359 two years ago to 74 now. The study has been conducted by breaking down the medicines in the top 20 therapeutic groups like Antidiabetics, Cardiac etc. For example, in the Tuberculostatics Ex group there are five brands which are under price control while there is just one brand which is outside the administered price mechanism. And what could be a better example of competition being beneficial to consumers than the fact that within the above group, in the one brand which is outside price control price has gone down by 13.6 per cent as compared to just 6.5 per cent in those five brands which are still under administered pricing.Another point which has been established by the study is that usage of those medicines which are under price control have declined over the period of three years. This is obvious if one looks at the growth of volumes in the top 20 therapeutic groups. While the compounded annual growth rate in volumes of 93 price controlled brands have gone up by just 4.7 per cent in the three years, the growth rate in the case of 207 brands which are outside administered pricing have gone up substantially by 12.8 per cent.
