The non-branded generic drugs (sold under chemical names such as cetrizene, omeprazole and nimusulide), which constitute about 8 per cent of the Rs 30,000 crore (Rs 300 billion) Indian pharmaceutical market, is currently not subjected to any such margin cap and according to a study done by the department some of them such are even sold at a margin as high as 1,000 per cent in the market.

The meeting of the Pharmaceutical Advisory Forum, comprising representatives from the Union Chemicals and Fertilisers Ministry, National Pharmaceutical Pricing Authority (NPPA), consumer organistions and state drug controllers, on Wednesday proposed fixing of margins of non-branded generic drugs at 400 per cent of the maximum allowable post manufacturing expenses (MAPE).

"We have asked the department of chemicals and fertilisers to study the implementation part of this suggestion given by the Pharmaceutical Advisory Forum and to work on the guidelines," Chemicals and Fertilisers Minister Ram Vilas Paswan said.

The government will also set a committee to look into the profit margins of the branded generic drugs.

"A study conducted by NPPA has shown that some of the branded generic drugs in the country are sold at very high prices making it unaffordable to poor people," Paswan said.