the 07/21/2008

Review of 'Economy' for the week gone by

  Harsh punishment for fake drug makers

The Union Cabinet has approved official amendments to the Drugs and Cosmetics Amendment Bill, 2005, which calls for harsh punishmentsto persons involved in manufacture and sale of spurious drugs. Theamendment bill, pending in Rajya Sabha, proposes to increase thequantum of punishment to a person involved in the crimes related tomanufacture and sale of spurious drugs.

The Bill proposes imprisonment for a term for not less than 10years which may be extended to life term and fine of not less thanRs 10 lakhs or three times value of the drugs confiscated,whichever is more, for a person involved in manufacture and sale ofspurious drugs.

SThis will help contain the problem of manufacture and trade ofspurious drugs, finance minister P Chidambaram said. Earlier, thecentral government had constituted an expert committee under thechairmanship of R A Mashelkar, Director General CSIR in 2003 toundertake a comprehensive examination of the problem of spuriousdrugs.

The committee recommended enhancement of penalties, setting up ofspecial courts for speedy trials and making the offences relatingto spurious drugs non-bailable. Based on these recommendations, abill was introduced in Lok Sabha on December 2003 and the billlapsed due to the dissolution of Lok Sabha. It was again introducedin Rajya Sabha in 2005 after which the standing committee suggestedcertain changes. The amendments have been carried out in view ofcertain changes.

Inflation inches closer to 12%

Inflation rose marginally to 11.91% for the week ended July 5.Inching closer to 12%, inflation moved up marginally by 0.02 % to a13-year high of 11.91 %. In the comparable period last year, therate of price rise was 4.61 %. Food items, including pulses, atta,tea, fruits, as also some petroleum products like jet fuel becamemore expensive during the the week under review, according to thewholesale price index released by the government.

Describing the increase in inflation Svery marginal the financeministry in a statement said Sthe annual inflation rate for thegroup of 30 essential commodities has declined to 5.74 from 5.98 %reported for the week ending June 28, 2008.

It further said the prices of essential commodities like foodgrains, pulses, edible oils, vegetable, dairy products and someother commodities including kerosene, soap and safety matches havemore or less stabilised.