Stories
Ground Report: 4500 Medicine Sold At 570, Exposing The Doctor And Medical Store Nexus
- •A ground report by News18India revealed a massive gap between the actual manufacturing cost of medicines and their printed MRP.
- •Medicines with an MRP of Rs 14,000 are bought in wholesale for Rs 1,550 and sold to customers for Rs 1,700.
- •Ashish Grover from Bhagirath Palace disclosed that a medicine with a Rs 4,500 MRP is acquired in wholesale for just Rs 570 or Rs 580.
- •Shopkeepers in hushed tones admitted to a nexus between doctors and specific medical stores where prescribed medicines are exclusively available.
- •Traders emphasize that policymakers and the Drug Controller must regulate inflated MRPs and profit margins to protect poor patients.
Key Questions Answered
A ground report outside the Delhi State Cancer Hospital exposed a massive gap between wholesale costs and printed maximum retail prices. For instance, a medicine with a wholesale price of just Rs 570 or Rs 580 carries an inflated market MRP of Rs 4,500.
Ashish Grover of the Delhi Drug Traders Association stated that wholesalers operate on fixed margins, but companies keep MRPs extremely high to drive up final costs. Retailers buy from wholesalers and then apply dynamic markups or discounts depending on the customer, forcing poor patients to bear the heavy financial brunt.
Shopkeepers and ground reports have confirmed that a direct tie-up exists between certain doctors and medical stores. Under this arrangement, specific medicines prescribed by a doctor are exclusively available at select pharmacies that have an understanding with that physician.
