The Rs 4,500 crore domestic pharma companies specialising in Indian system of medicines have opposed the government's move to bring these medicines which include non-allopathic drugs like ayurvedic, unani, herbal and homeopathic under price control. The domestic pharma companies that specialise in these products are of the view that the ingredients used by them are not yet standardised unlike allopathy and hence the issue is unjustified. According to sources, the step would endanger the very survival of the domestic companies, which are struggling for survival due to intense competition in the domestic market and also lower margins following the hike in excise duty to 16 per cent from eight per cent early this year. The industry people are of the opinion that the government should establish a quality standard before bringing the prices under control.
Sources say that the drugs based on herbs are different from that of allopathic.
Under the circumstances. According to sources, products such as herbal cough syrups and Chywanprash could be first casualties for the companies like Himalaya Drugs, Dabur etc. According to the industry circle, it would take about six months for the Government to bring out a draft on price control of herbal products. However, major players are not too keen on the prospect of their products being under price control.