Lok Sabha Question No. 473 (UNSTARRED), answered on 2018-02-06
Subject: Drug Price Rise
Ministry: CHEMICALS AND FERTILIZERS
Asked by: ASHOK MAHADEORAO NETE

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

## LOK SABHA UNSTARRED QUESTION NO. 473 TO BE ANSWERED ON 06 th  February, 2018

## Drug Price Rise

## †473. SHRI ASHOK MAHADEORAO NETE:

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

- (a) the  details  of  the  rise  in  price  of  various  drugs,  specially  life  saving  drugs during each of the last three years and the current year, as on date and the reasons for the rise in price of such drugs;
- (c) whether  the  Government  has  taken  steps  to  check  price  rise  of  drugs, specially life saving drugs in the country; and
- (d) if so, the details thereof and if not, the reasons therefor?

## 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): As per provisions of Drugs (Prices Control) Order, 2013 (DPCO, 2013), the annual  upward/downward  revision  in  the  prices of scheduled  formulations is permissible to the extent of increase/decrease in the Wholesale Price Index (WPI) for the scheduled formulations and upto 10 percent for non-scheduled formulations. National  Pharmaceutical  Pricing  Authority  (NPPA) revised  the  ceiling  prices  in respect  of  scheduled  drugs  after  incorporating  WPI  @  3.849%  for  the  year  2014 (w.e.f. 01.04.2015) and 1.97186% for the year 2016 (w.e.f. 01.04.2017). NPPA has also notified the revised ceiling prices of scheduled formulations for the year 2015 after applying WPI of (Minus) 2.7105%.

(c) & (d): National  Pharmaceutical  Pricing  Authority  (NPPA) is  monitoring  the prices of scheduled as well as non-scheduled medicines under DPCO, 2013 so that these formulations  are  available  to  public  at  ceiling  prices  notified  and  increase  in price is limited to the provisions of DPCO, 2013. It takes action against companies found overcharging the consumers based on the references received from the State Drugs  Controllers  /  individuals,  samples  purchased  from  the  open  market  and reports  from  market  based  data  and  complaints  reported  through  the  grievance redressal  websites,  'Pharma  Jan  Samadhan'  and  'Centralized  Public  Grievance Redress and Monitoring System (CPGRAMS)'.

The monitoring of increase in the price of formulations beyond the permissible limit is also done on the basis of market data submitted by All Indian Origin Chemists &  Distributors  Limited  (AIOCD)  (Pharma  Trac  Data)  and  individual  complaints received.  NPPA  initiates  action  against  manufacturers  which  have  overcharged patients. In the last three years, demand notices have been issued as follows:

| Year                     |   Number of cases |   Demanded Amount (Figure in Crores) |
|--------------------------|-------------------|--------------------------------------|
| 2014-15                  |               129 |                               581.08 |
| 2015-16                  |               264 |                               931.18 |
| 2016-17                  |               138 |                               334    |
| 2017-18(upto 31.12.2017) |               189 |                               675.41 |