Will PRICE CAP DISRUPT BOOMING NUTRA INDUSTRY?

The possibility of including nutraceutical products under the purview of CDSCO has sparked a heated debate across multiple fronts

Onion prices surged to Rs 100-150 per kilogram in 2019 due to poor monsoon and subsequent crop damage. The government responded by banning exports, imposing stock limits, and importing onions. While these steps reduced domestic prices, farmers and exporters protested, citing financial losses. Critics argued that better supply chain management and long-term investments in storage infrastructure would have been more effective than reactive price controls. Price control measures on onions highlight the delicate balance between protecting consumer interests and ensuring farmer welfare. While such interventions offer immediate relief, they often come at the cost of long-term market stability, making them a subject of recurring controversy. The same situation could be a reality for the Indian nutraceuticals sector in 2025 if the idea of bringing nutraceuticals under the Central Drugs Standard Control Organisation (CDSCO) activates on the field. let’s explore further.

Price controls are often seen as a win for consumers. Lower prices make essential products more affordable and accessible, especially for middle- and lower-income groups. In a country like India, where healthcare costs significantly burden many families, affordable nutraceuticals could promote preventive care and reduce reliance on expensive treatments. However, the possibility of including nutraceutical products under the purview of CDSCO has sparked a heated debate across multiple fronts. While this move could theoretically ensure quality control, standardisation, and affordable pricing for consumers, it simultaneously threatens to curtail industry innovation and growth. Nutraceuticals—a booming sector combining nutrition and pharmaceuticals—has been largely unregulated in India, allowing companies to innovate, experiment, and flourish. However, the possibility of price control, an almost inevitable outcome of stricter CDSCO regulation, poses a double-edged sword. This cover story critically examines the implications of bringing nutraceuticals under CDSCO regulations, particularly focusing on the contentious issue of price control. While the decision appears consumer-friendly, it risks stifling the industry that has been instrumental in addressing health and wellness gaps in India.

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