Lok Sabha Question No. 1907 (UNSTARRED), answered on 2017-03-14
Subject: Price Difference of Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: VIKRAM USENDI, BANSHILAL MAHTO

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO. 1907

TO BE ANSWERED ON 14 th  March, 2017

## Price Difference of Medicines

## †1907. SHRI VIKRAM USENDI: DR. BANSHILAL MAHATO:

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

- (a) whether there is a huge difference between the production costs and selling prices of several medicines and drugs in the country;
- (b) if so, the details thereof and the reasons therefor;
- (c) the steps taken by the Government to control the prices of medicines and tackle the said situation;
- (d) whether the Government is aware of the fact that the same medicine is being sold at different prices by different drug/pharmaceutical companies;
- (e) if so, the reaction of the Government thereto; and
- (f) the action taken by the Government against the erring companies?

## 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) & (b): Fixation of ceiling prices of pharmaceutical products is done on market-based pricing  principle  as  enunciated  in  the  National  Pharmaceutical  Pricing  Policy,  2012  and Drugs  (Prices  Control)  Order,  2013  (DPCO,  2013).  Consequently  production  cost  data  of medicines is not maintained by National Pharmaceutical Pricing Authority  (NPPA)/ Department of Pharmaceuticals (DoP).
- (c): The ceiling prices of formulation / drugs which are listed in National List of Essential Medicines, 2015 (NLEM 2015) and hence included in the Schedule-I of the DPCO, 2013 are notified as per provisions of DPCO, 2013. Accordingly, NPPA has notified the ceiling prices of 664 scheduled formulations under NLEM-15 / revised Schedule I of DPCO, 2013.
- (d) to (f): There is  no  restriction  on  the  manufacturers  to  fix  different  prices  for  same scheduled formulation under different brand names as long as it is  at or below the ceiling prices fixed by NPPA. NPPA fixes the ceiling price of formulations listed in Schedule - I of the DPCO, 2013. Such Ceiling Prices are applicable to all brands (including unbranded/generic versions of the formulations) as well as to all manufacturers.

All  the  existing  manufactures  of  scheduled  formulations,  selling  the  branded  or generic or both the versions of scheduled formulations at prices higher than the ceiling price (plus  local  taxes  as  applicable)  so  fixed  and  notified  by  the  Government,  shall  revise  the prices of all such formulations downward not exceeding the ceiling price (plus local taxes as applicable). Companies selling any formulation at prices lower than the ceiling price notified have to maintain existing maximum retail price.

Whenever companies are found selling scheduled formulation at prices  higher than the ceiling prices fixed by NPPA, action is taken against such companies under the relevant provisions of DPCO, 2013 and the overcharged amount, along with interest is levied on the company.  Similar  action  is  taken  whenever  companies  are  found  selling  non-scheduled formulations at a price which is 10% higher than the MRP of the preceding twelve months.

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