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Drug price predicaments

The State Pharmaceutical Corporation, which in terms of its founding ideals is expected to be a source of succour for the less privileged strata of society, has announced a bonanza of sorts for the elders of this country. This gift consists of a two percent discount on all drugs prescribed for citizens over 60 years of age. The scheme is expected to come into effect from next Tuesday, World Elders' Day.

This measure is likely to be warmly welcomed by the intended beneficiaries, who, over the years, have proved to be a highly vulnerable group, in terms of declining material, financial and emotional comforts. A two percent reduction in drug prices would prove to be substantial relief for particularly pensioners, and wage earners whose pay packets have grown increasingly slimmer over the years. All that these elders need to do is present their drug prescriptions at SPC sales outlets and SPC franchize and authorized dealers and they would receive their medicines at the reduced prices.

At a time when numerous State ventures are believed to be coming under the hammer of privatization, we congratulate the State Pharmaceutical Corporation for remaining true to its founding ideals of being people-sensitive and, of course, purse sensitive. It must be remembered that we are up against hard times; the next two years are likely to be years of arduous economic recovery and could prove difficult from the average wage-earner's point of view. When viewed against this bleak economic backdrop, the SPC's efforts to soften the cost-of-living crunch are praiseworthy.

By a happy co-incidence, local private drug firms are also to reduce the prices of their drugs by some five to eight percent. This was to come into effect last August with the removal of all taxes on drugs, but the firms had asked for some time to effect the price changes in view of the fact that they had to be rid of the drugs purchased before August 1st, at the old prices. If intention is translated into practice then, the average consumer should see a reduction in his drug bill, resulting in an overall lightening of his cost-of-living burden.

The big question which is likely to be on the lips of the ordinary people is, - would these good intentions come to pass? Such pessimism and scepticism should only be expected given the average citizen's experience of forever battling a steeply rising cost of living, proclamations of price reductions notwithstanding.

One could be fairly certain that the SPC would be effecting the announced changes because it wields administrative control over its sales outlets and sales agents. But how would the private drug corporations ensure that the private pharmacies and agents of their drugs would be abiding by their decisions on prices?

We do not wish to rush to conclusions or make premature predictions, but these good intentions on the sale of drugs shouldn't encounter the kind of resistance State agencies are compelled to face while enforcing price reductions on ordinary consumables. For instance, the introduction of VAT should have, theoretically, brought down the prices of some essential goods, but this doesn't seem to be the case. It is most often than not, as we said before, a case of the State proposing but the Mudalalis disposing. We hope the same fate would not befall the present exercise of reducing the prices of drugs.

It wouldn't be advisable for the Government to sit stock still and allow the traders to rule the roost. A fresh, coordinated and consistent effort needs to be made to ensure that price reductions are effected. We are told that the necessary State mechanisms are being shaped for ensuring stable and fair prices and for the control of irregularities in trade.

Such tasks cannot wait for another day. These arrangements must be in place before disenchantment sets in and the ordinary people begin to realise that there is no "peace dividend" after all.

The private drug trade too needs to put its thinking cap on and figure out how it intends to rein in its agents, who, after all, are not the most charitable of souls.

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