BOOK REVIEWS 71 committee's only recommendation in this regard relates to the distribution of household remedies through such outlets as post offices and dispensaries. Evolving and implementing a suitable distribution mechanism for other essential drugs has been left to the National Drugs Authority of India, a statutory body yet to be created. Closely linked with distribution is the question of prices. That prices of drugs are the highest in India as compared to the rest of the world was brought out by 'the Kefauver Committee of the US Senate. In 1963 for the first time, drug prices were stabilized by a control order. In 1970 for the first time, prices were reduced, but continued to soar regardless. The Hathi Committee agrees that this is true. In their words, "the operation of price control does not appear to have contri-.buted materially to the emergence of a product or price pattern which is more in consonance with social needs or national objectives.958 The committee revealed how fancy packing and other selling expenditures increase drug prices. The use of brand names as compared to generic names also enables the industry to sell essential drug formulations at varying rates. The recommendation for elimination of brand names and their substitution "by generic names is the first essential for bringing down pharmaceutical prices to reasonable levels. However, this suggestion has not found favour with doctors, manufacturers and policymakers. The committee's suggestion ofstandaidization and economy in the use of packing material is also a step in the right direction. J\To Hope of a Price Cut The suggestion has been made to fix prices on the basis of post-tax return of 12-14 per cent on equity or 8-10 per cent profit on sales. This rate of profit on a commodity so essential for human life, and consumed by the masses, seems somewhat unjustified. The committee has also suggested exemption from price control (a) bulk drugs which in terms of basic sales do not exceed Rs 25 lakhs per annum4 and (b) formulation units having annual turnover of less than one crore or an all-India sale of less than Rs 15 lakhs.6 Thirteen drugs, identified for purposes of generic names, have also been excluded from price control. This selectivity in the system of price regulations is likely to increase the prices of many drugs which at present come under the price control order. The committee itself says, ^the range of products coming under price control will be limited and therefore manufacturers will have much more freedom to adjust the prices of other products to market conditions and can earn profits in excess to the ceiling suggested above.956 Also, the new price control order will be in the nature of ceiling and the manufacturer will be free to increase the price upto the ceiling without prior approval of the government. ' The Hathi Committee also highlighted the problems posed by foreign and multinational pharmaceutical companies in India.7 Suggestions were made to stimulate the growth of the Indian sector: manufacture