WITH appalling wonder, we are confronted with a harsh reality that the life-saving medicines we rely on daily have skyrocketed in price, leaving many of us grappling with the impossible choice between our health and our financial stability.
An English newspaper on Sunday reported a major disparity between factory-gate and retail medicine prices in Bangladesh, highlighting a growing concern over the accuracy of the Producer Price Index (PPI) data.
Despite the PPI for pharmaceuticals remaining stable for 14 months until May 2024, retail drug prices have surged by as much as 140 per cent in the first few months of 2024, placing a heavy financial burden on patients.
Consumer-rights groups and economists are questioning the reliability of the PPI, which is prepared by the Bangladesh Bureau of Statistics (BBS).
The PPI should reflect factory-gate prices, and when these remain stable, retail prices should follow suit.
However, this has not been the case, leading to widespread concern about data transparency and market regulation.
This situation is exacerbated by minimal regulatory intervention, allowing retail pharmacies to continuously raise prices.
Pharmacy owners cite rising operational costs as the reason for price hikes, but consumer-rights advocates argue that many pharmacies are taking advantage of the situation, often selling drugs above the maximum retail price (MRP), especially in smaller quantities where prices are unmarked.
However, the economists suggest that factors like currency depreciation and reduced pharmaceutical raw-material imports should have impacted factory-gate prices, raising concerns over the PPI’s accuracy.
The BBS defends its methodology, claiming adherence to international best practices, but critics argue that the data does not reflect actual market conditions.
The issue of price discrepancies extends beyond pharmaceuticals, affecting other sectors like textiles and wood manufacturing.
The Bangladesh Competition Commission (BCC) has called for regulatory action, warning that drug prices in Bangladesh are higher than in neighboring countries, stressing the need for government intervention to address the crisis.
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