Manufacturers of drug formulations for pharmaceutical companies are pitching for an increase in prices as they say that production at the present cost-level is unsustainable. The Indian Drug Manufacturers’ Association (IDMA) has informed the government that rise in prices of active pharmaceutical ingredients (APIs), excipients and packing materials over the last few months has led to a sharp increase in drug formulations. According to IDMA, an ad hoc price increase of 25 per cent in all APIs falling in the scheduled category can be introduced to ensure continued drug production. A price increase of at least 20 per cent is required in all scheduled formulations in order to neutralise high input costs, it says.IDMA secretary general Daara B Patel says factors like rise in cost of utilities due to hike in fuel prices have led to this situation. The rupee devaluation, while benefiting exporters has hit domestic producers who use imported inputs. Patel said unremunerative prices in the past have seen production stoppages, shortages and shifting usages.Price increase in APIs imported from China is due to closing down of units for environmental reasons. Increase in prices of petroleum-based products, revaluation of the Chinese currency and increased electricity costs have added to the high price situation.20%The proposed increase in all scheduled formulations in order to neutralise high input costs• Rise in cost of utilities due to hike in fuel prices have led to this situation• The rupee devaluation while benefiting exporters has hit domestic producers who use imported inputs• The price increase in APIs imported from China is due to closing down of many units for environmental reasons
