New Delhi: For last 8 months P. R, Somani, founder president, The Nizamabad Chamber of commerce and industry ran from pillar to post in Delhi to get Trade Margin Cap in place to rationalize the cost of medicines. And lo and behold! There is a windfall for patients. Cancer medicines have been brought under 30% trade margin cap. Cancer medicines which used to cost a bomb are now so very cheap. The new Modi government is mulling to place trade margin cap on all medicines in times to come.
Mr Somani insists that it was his marathon efforts that made powers that be to understand the gravity of the matter. It will revolutionise the cost of medicines which is the cause of much of the out of pocket expenditures on treatment.
Mr Somani , the Telengana businessman is hogging the lime light for this. The Nizamabad Chamber of commerce and industry has felicitated him and profusely praised his missionary zeal. Mr Somani claimed that he brought the issue of exorbitant cost of medicines and the urgent need to clamping trade margin cap to bring down the cost for hapless patients to the notice of Prime Minister Narendra Modi, thanks to a number of BJP leaders who close to PM.
It was due to Somani’s tremendous pressure & persuasion that govt. has brought the cancer drugs under 30% Trade margin cap. As a result, the cost of cancer drugs have come down by 80 to 90% and 22 lakhs cancer patients are benefited and many lives will be saved. Mr Somani claimed that Mody Govt. in its second Avatar plans to implement 30% Trade margin cap on all drugs to curb profiteering within first 100days agenda for the new govt. The proposal has been discussed with the Prime Minister’s office, NITI Aayog and department of pharmaceuticals a senior official said on the condition of anonymity.
Trade Margin difference between the price at which manufacturers sell a drug to stockiest and the price at which it is available to patients. Once it get implemented all medicine prices will be slashed by 80 to 90% as against they are charging upto 3000 to 5000% more on actual prices as per MRP.
This will be the biggest revolution in medicine prices for 130 crore people and they will save upto 10 lakhs crores which is equal to total collection of GST or income tax revenue of entire country.
Talking to Medicare News, Mr Somani said, ‘ I was under tremendous pressure that chemist and manufacturers will oppose this move but fortunately for patients and for me both has been supported. All India Organization of Chemists & druggists president J.S. Shinde has given a letter to Mrs.Shubraj Sing Chairman NPPA( National Pharmaceutical Pricing Authority) on 29th March, 2019 for supporting move for Trade Margin cap on medicines. Also Kanchana T.K.Director General Organization of Pharmaceutical Producer of India (OPPI) said that her organization which represents multinational drug firms support the proposal to cap trade margin on non schedule drugs. They said “Trade Margin rationalization approach for all non schedule drugs where the trade margins are capped at 30% is a welcome move. OPPI members are committed to the interest of Indian Patients”.