Effects of Volume-Price Contracts on Pharmaceutical Prices: A Retrospective Comparative Study of Public Hospitals in Hubei of China

Background: Pharmaceutical expenditure has been increasing worldwide. Many countries have attempted to contain the increase through collective bargaining, including in China. In 2015, the Chinese government introduced a new policy to empower regional governments to reduce pharmaceutical prices through its existing tendering system which enables a lower price for products with higher procurement volumes. Xiangyang municipality in Hubei province took a lead in piloting this initiative.Objectives: This study aimed to evaluate the effects of the volume-price contract initiative on pharmaceutical price procured by the public hospitals in Xiangyang.Methods: A retrospective comparative design was adopted. The price of cardiovascular medicines (349 products under 164 International Nonproprietary Names) procured by the public hospitals in Xiangyang was compared with those procured in Yichang municipality in Hubei. A total of 15,921 procurement records over the period from January 2017 to December 2018 were examined (Xiangyang started the volume-price contract initiative in January 2018). Generalized linear regression models with a difference-in-differences approach which could reflect the differences between the two cities between January 2018 and December 2018 were established to test the effects of the volume-price contract initiative on pharmaceutical prices.Results: On average, the procurement price for cardiovascular medicines adjusted by defined daily dosage in Xiangyang dropped by 41.51%, compared with a 0.22% decrease in Yichang. The difference-in-differences results showed that the volume-price contract initiative resulted in a 36.24% drop (p = 0.006) in the price (30.23% for the original brands, p = 0.008), in addition to the therapeutic competition effect (31.61% reduction in the price, p = 0.002). The top 100 domestic suppliers were highly responsive to the initiative (82.80% drop in the price, p = 0.001).Conclusion: The volume-price contract initiative has the potential to bring down the price of pharmaceutical supplies. Higher responses from the domestic suppliers are evident.

Impacts of China’s Minimum Grain Procurement Price Program on Agrochemical Use: A Household-Level Analysis

China’s minimum grain procurement price program aims to boost grain production and ensure food self-sufficiency. It may also affect the already very high levels of chemical fertilizer and pesticides consumption, but little is known about these potential side-effects. In this paper, we apply panel data regression techniques to a large rural household-level data set for the period 1997–2010 to examine whether and how the minimum grain procurement price program affected households’ agrochemical use. We find that the minimum grain procurement price program negatively affected both chemical fertilizer and pesticides use, with pesticides use being more responsive than the use of fertilizer. The higher wheat and rice prices that resulted from the program stimulated the use of agrochemicals, but they also stimulated area expansion which contributed to lower agrochemical use per unit of land. These counteracting indirect effects were overshadowed by the large negative direct effect of the minimum procurement price of rice on the use of fertilizer and pesticides.

Challenges to Overcome by the Members of the NARMUL Dairy Cooperative

Dairy cooperatives have played an important role in improving the economy of small milk producers’ households in different regions of India. Telangana is one amongst them, which is predominantly an agricultural state with an excellent potential for milk production. The study was conducted to analyze the constraints faced by dairy farmers of Yadadri- Bhongir district of Telangana. The study data was collected during March-April 2021 from 90 milk producers of NARMUL co-operative in Yadadri-Bhuvangiri district of the state. Low procurement price of milk, Lack of disease control programs, No Bonus, Lack of milk testing & animal screening facilities, Irregular visits of Veterinary staff were considered as the most serious constraints where as, Unavailability of first aid services and lack of sufficient supply of vaccines to the animals, Non availability of loan facilities, Lack of artificial insemination (A.I.) facilities in/around the village, Inadequate supply of feed and mineral mixture were considered as the least serious constraints.

Development of State Space Models with Weather as Exogenous Input for Sugarcane Yield Prediction in Haryana

Parameter constancy is a fundamental issue for empirical models to be useful for forecasting, analyzing or testing any theory. Unlike classical regression analysis, the state space models (SSM) are time varying parameters models as they allow for known changes in the structure of the system over time and provide a flexible class of dynamic and structural time series models. The work deals with the development of state space models with weather as exogenous input for sugarcane yield prediction in Ambala and Karnal districts of Haryana. The state space models with weather as exogenous input using different types of growth trends viz., polynomial splines; PS(1), PS(2) and PS(3) have been developed however PS(2) with weather input was selected as the best suited model for this empirical study. Timely and effective pre-harvest forecast of crop yield helps in advance planning, formulation and implementation of policies related to the crop procurement, price structure, distribution and import-export decisions etc. These forecasts are also useful to farmers to decide in advance their future prospects and course of action. The sugarcane yield forecasts based on state space models with weather input showed good agreement with state Department of Agriculture and Farmers’ Welfare yield(s) by showing nearly 4 percent average absolute relative deviations in the two districts.

Generalized Economic Order Quantity Inventory Model using Brownian Motion in Food Production Planning

The goal of this paper is to propose a Generalized EOQ inventory model, which combines Inventory replenishment and pricing decisions for perishable product in an Inventory model. The Stochastic Demandrequests for new and old items are derivedvia linear functions of their cost. The proposed solution obtains from the optimum system solution, such as food Procurement price, Shortage cost, Purchasing cost, Operational cost and Total costare reduced. A Mathematical model is introduced along with differential matrix to find optimal solutions for the Inventory method in food production planning. Numerical example and Sensitivity Analysis are explained in the proposed system. Brownian Motion are found from Cycle Length (L= 1.1 to 1.5). The Brownian Motionanalyses all the costs and plays a major part to reduce it further.

Green Public Procurement: Case Study of Latvian Municipalities

Green public procurement (GPP) is an instrument for public institutions that have made sustainable consumption and financial aids savings, particularly taking into consideration expenses of the total life cycle of the agreement, not just the procurement price. Municipalities are important to promotion of sustainable consumption through their positive effects on citizens and other stakeholders. The present paper analyses the contribution of municipalities of the Republic of Latvia in developing sustainable consumption through GPP. The aim of the paper is to explore the development of GPP in municipalities, analysing influencing factors. By analysing data from the Procurement Supervision Agency and the State Regional Development Agency, the proportion of GPP is explored. The paper includes data collected in a survey of municipalities of Latvia aiming to identify the main factors that promote the development of GPP and the ones that are obstacles for implementing the GPP. The conclusions show that GPP is a relatively new activity in Latvia, especially in relation to sustainable consumption. Analytical, graphic, statistical research methods as well as other qualitative and quantitative research methods have been used in the research.