BackReckitt Benckiser questions price cap on condoms
Lawyers appearing for the company argued that since the production of condoms in India far exceeded demand, there was no need to include them on the list of essential medicines
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New Delhi: The Delhi high court on Monday heard arguments in petitions filed by condom makers Reckitt Benckiser (India) Ltd. and JK Ansell Ltd. (JKAL), against a drug pricing control order (DPCO) 2013 that put a cap on the price of condoms after classifying them as essential medicine.
In May 2013, the DPCO had fixed the prices for condoms at Rs6.56 per piece. On 17 July, the government had informed the high court that the NPPA (National Pharmaceutical Pricing Authority) had increased the cap on prices of condoms by 22%, an increase of only Rs1.48 per piece.
Lawyers Kapil Sibal and Arvind Nigam, appearing for Reckitt Benckiser, argued that since the production of condoms in India far exceeded demand, there was no need to include them on the list of essential medicines. Sibal pointed out that 33% of the condoms sold in India were imported and since price fixation would only apply to condoms produced in India, a large part of the market would be outside the purview of the DPCO and it does not serve any purpose.
Sibal also argued that “condoms may be for common use but pleasure condoms are not for common man" and there was a difference between “ordinary" and “pleasure" condoms. Arguing that even though the Essential Commodities Act covers foodstuffs, it would not cover all kinds of food, he said “Why would you not control the price of cheese? Cheese is also foodstuff." Sibal said, “The scheme is clear under the Act (Essential Commodities). What is controlled is what is used ordinarily by ordinary people" and pleasure condoms are not targeted at ordinary people.
Nigam argued that even the formula for fixing price ceiling was not applied properly. Arvind Datar, appearing for JKAL, argued that the very structure of the DPCO excludes the possibility of condoms being included. The case has been fixed for hearing on 21 August.
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