HC reserves order on plea against cap on condom prices

The Delhi High Court today reserved its order on a plea by two pharma firms challenging the Centre's decision to put a cap on condom prices by including it in the Drug Price Control Order (DPCO).
The government and pharma firms, Reckitt Benckiser and J K Ansell Ltd (JKAL), concluded their arguments after which a bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw reserved its order.
Earlier, the court had queried as to what was the issue if consumers were willing to pay for premium or luxury male contraceptives.
The government was of the view that if luxury condoms are removed from the DPCO then the manufacturers will flood the market with their expensive variety and make their lesser priced contraceptives scarce.

"They may even make their lower priced brands/products scarce or in poor packaging which may not inspire confidence in the consumers," Additional Solicitor General (ASG) Sanjay Jain had said during his earlier arguments before the court.
The government had earlier said condoms are currently in the national list of essential medicines and there can be no gradation, of luxury and ordinary, where drugs are concerned.

The pharma firms have in their pleas contended that their products are 'devices' and not 'medicines' and thus would not fall under the DPCO and therefore, no cap can be put on the prices.
The firms have claimed their products are luxury products "meant for pleasure" and have also sought clarification on whether the current ceiling would apply to only utility condoms and whether NPPA proposes to fix a separate cap on "pleasure condoms".

The Centre had in July told the court that it has increased the cap on prices of all brands of condoms in the country by 22 per cent. However, the increase in prices comes to Rs 1.48.
The pharma companies in their pleas have challenged a November 5, 2013 notification of the government according to which the ceiling on condom prices was fixed at Rs 6.56.