Lok Sabha Question No. 5242 (UNSTARRED), answered on 2018-03-27
Subject: Intervention by NPPA
Ministry: CHEMICALS AND FERTILIZERS
Asked by: VIJAY KUMAR S.R., T. RADHAKRISHNAN, ANWHAR RAAJHAA, SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, NARANBHAI KACHHADIA, BIDYUT BARAN MAHATO

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO.5242 TO BE ANSWERED ON 27 th  March,2018

## Intervention by NPPA

5242.  SHRI S.R. VIJAYAKUMAR:

SHRI T.RADHAKRISHNAN:

SHRI A. ANWHARRAAJHAA:

SHRI SUDHEER GUPTA:

SHRI GAJANANKIRTIKAR:

SHRI NARANBHAIKACHHADIYA:

SHRI BIDYUT BARANMAHATO:

## Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the National Pharmaceutical Pricing Authority (NPPA) has studied the trade margin on various medical equipment and medicines recently;
- (b) if so, the details of the study and the outcome thereof;
- (c) whether the  NPPA has found that needles and syringes  are  sold  at  prices  far above their manufacturing costs in the country, if so, the details thereof and the reasons therefor;
- (d) whether the Government has received any demand for intervention in regulating the prices and  if so, the details thereof along with  corrective  measures taken/being taken by the Government in this regard; and
- (e) the  further  steps  being  taken  by  the  Government  to  prevent  artificial  rise  inthe MRP of medicines and medical equipments at the behest of hospitals?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS; MINISTRY  OF  SHIPPING  AND  MINISTRY  OF  CHEMICALS  AND  FERTILIZERS (SHRI MANSUKH L. MANDAVIYA)

- (a): Yes, Madam. National Pharmaceutical Pricing Authority (NPPA)has analyzed the trade margin of syringes, needles, cardiac guide wire, balloon catheter and guiding catheter and uploaded the details of the same on the website of NPPA (www.nppaindia.nic.in).
- (b): During  the  examination  of  data,  it  was  found  that  the  prices  of  catheter,  balloon catheter and guidewire are exorbitantly high and average margin varied from 62% to 405%. Similarly  maximum trade margin on disposable syringes with needles varied from 332% to 1,251%, that on insulin pen needles and disposable hypodermic needles varied from 57% to 789%.
- (c): The price fixation  under  the  Drugs  (Prices  Control),  2013  (DPCO,  2013)  is  done  on market criteria and not on cost basis. However, as mentioned at (b) above, NPPA had found that the trade margin on disposal syringes with needles varied from 332% to 1,251%, that on insulin pen needles and disposable hypodermic needles varied from 57% to 789%.  As per

the provision of DPCO, 2013, 16% margin is provided to retailers on  price to retailer (PTR) for scheduled medicines. However, no such cap is there for non-schedule medicines.

(d) At various consultations held with the stakeholders, a few stakeholders  have advocated  for  price  regulation.  NPPA  requested  Ministry  of  Health  &  Family  Welfare (MoH&FW) to include cardiac catheters, balloon, and guidewire and intra ocular lenses under National List of Essential Medicines so that the ceiling prices of these medical devices could be fixed.

(e): Health is a State subject, it is for the respective State/UT Government to take action against  hospitals  which  are  overcharging  the  consumers  under  the  appropriate  statutory provisions  applicable  in  the  State/UT.  However,  as  per  the  provisions  of  DPCO,  2013, manufacturers  of  scheduled  medicines  are  not  allowed  to  sell  their  products  beyond  the ceiling prices fixed by NPPA. There is no such cap on non-scheduled medicines. However, the  manufacturers  are  not  allowed  to  increase  the  price  more  than  10%  per  annum.    Any violation is dealt with as per the provisions of this order.

******