Subsidies on Medications: Pharmacists Fear a Hasty Decision

Unless unforeseen circumstances arise, the Price Stabilisation Fund for pharmaceuticals will be operational from February 1. However, voices are already being raised to denounce a lack of consultation and flaws that may benefit importers more than consumers.

Initially set for January 15, the Price Stabilisation Fund (PSF) for pharmaceuticals is now expected to commence on February 1. This delay stems from the need for pharmacies to modify their computer systems. The initiative includes a subsidy of Rs 50 on certain medications, particularly anti-diabetics, anti-hypertensives, and cardiovascular drugs.

With just days before implementation, this measure has sparked intense criticism. Many pharmacists argue that the real beneficiaries will be the importers rather than the consumers. Some have already noted price increases for several medications, ranging from Rs 100 to Rs 1,000 in the past weeks. Thus, the Rs 50 subsidy may quickly be absorbed by market price fluctuations.

For example, a medication for heart disease initially priced at Rs 750 is now offered at Rs 845.56, while another product has jumped from Rs 1,075.49 to Rs 1,571.71.

Ashwin Dookun, president of the Pharmaceutical Association of Mauritius (PAM), acknowledges that "the government's intention is good." However, he laments that the decision was made "hastily and without any consultation with pharmacists." "It's a somewhat shaky system proposed by the Ministry of Commerce, and we must adapt nonetheless," he explains.

Dookun also criticizes dubious practices: "Some wholesalers have already artificially inflated prices by urging their suppliers to offer higher prices. They can dictate terms since the survival of their business is at stake." He mentions a situation resembling "almost a monopoly" in the importation of certain products, which undermines competitiveness and keeps prices high. "Consumers are the biggest losers in this situation," he concludes.

Siddique Khodabocus, president of the Association of Small and Medium Pharmaceutical Importers, shares this view. He highlights that the price increase is due to "freight costs and foreign exchange rates." "In some cases, it's the supplier themselves who raises their product prices," he specifies. He reminds that "neither pharmacists nor wholesalers set prices, which are controlled by the Ministry of Commerce." "The price increases are independent of pharmacies, as profit margins are regulated by the Ministry of Commerce," he adds.

Unencouraging Precedent

Pharmaceutical associations fear that this measure will meet the same fate as the Regressive Mark-Up, which did not yield the expected results. They argue that the lack of consultation with stakeholders contributed to the delay in implementing the PSF and risks rendering it obsolete.

Ashwin Dookun recalls that "25 to 30% of patients prefer to buy their medications from private pharmacies," despite them being free in the public service, due to product quality. Siddique Khodabocus raises the question: "Why must the government subsidize medication prices when they are available in public health services?" He believes it's "very embarrassing for a government that offers free services in hospitals to provide subsidies to private pharmacies."

Announced on Friday, December 19, for only three categories of medications (anti-diabetics, anti-hypertensives, and cardiovascular drugs), the measure was significantly expanded by Friday, December 26. It now covers eleven categories of pharmaceutical products, including antacids, anti-cancer drugs, biological products, inhalers, vaccines, analgesics/antipyretics, anthelmintics, and antifungals. According to Minister of Commerce Michaël Sik Yuen, this subsidy will impact 900 medications, 22 importers, and 400 private pharmacies nationwide.

While the measure was initially set to come into force on January 15, 2026, it had to be postponed due to significant technical constraints. The lack of preparedness among importers following the year-end holidays is the primary reason for this delay.

Several working meetings have been held between authorities and stakeholders, and a deadline has been granted to make necessary changes. Minister Sik Yuen emphasized the unique nature of medications: "It's not like buying a can of sardines where you can choose another brand if your usual one is unavailable." According to Minister Sik Yuen, "importers and pharmacists have welcomed this measure."