Prices of Medicines

In pursuance of provisions of the National Pharmaceuticals Pricing Policy, 2012 (NPPP, 2012) and the Essential Commodities Act, 1955, the Government notified the Drugs (Prices Control) Order, 2013 (DPCO-2013). The National Pharmaceutical Pricing Authority (NPPA), an attached office of the Department of Pharmaceuticals fixes the ceiling price of all scheduled formulations specified in the first schedule of the DPCO, 2013.All manufacturers of scheduled medicines have to sell their products within the ceiling price (plus applicable Goods and Service Tax) fixed by the NPPA. It also fixes retail price of new drugs under DPCO, 2013 for existing manufacturers of scheduled formulations. In respect of non-scheduled formulations, a manufacturer is at liberty to fix its Maximum Retail Price (MRP) but cannot increase the same by more than 10% of what was prevalent during the preceding 12 months.

The details of drugs, including medical devices, brought under price control/ regulation by NPPA are as under:

(i) Ceiling prices of 890 scheduled formulations across various therapeutic categories under NLEM 2015 have been fixed by NPPA.

(ii) Retail price of approx. 2,023 new drugs under DPCO, 2013 have been fixed.

(iii) MRP of 106 non-scheduled drug formulations capped, including that for 22 diabetic and 84 cardiovascular drugs.

(iv) Ceiling price of Orthopaedic Knee Implants fixed under Para 19 of DPCO, 2013.

(v) Trade Margin of non-scheduled formulations of 42 select Anti-cancer medicines capped under ‘Trade Margin Rationalization’ approach as a pilot for proof of concept.

(vi) Regulated the price of Oxygen Concentrators, Pulse Oximeter, Blood Pressure Monitoring Machine, Nebulizer, Digital Thermometer and Glucometer under ‘Trade Margin Rationalisation’ Approach.

National List of Essential Medicines (NLEM) notified by the Ministry of Health & Family Welfare consists of essential medicines falling under various therapeutic categories. These medicines are incorporated in the First Schedule of the DPCO, 2013 and their ceiling prices is fixed by NPPA as per provisions of DPCO, 2013. The details of ceiling prices and retail prices of various formulations fixed by NPPA are available at its website at nppaindia.nic.in.

This information was given by Minister of State for Chemicals and Fertilizers, Shri Bhagwanth Khuba in a written reply in Lok Sabha today.