Lok Sabha Question No. 1724 (UNSTARRED), answered on 2018-03-06
Subject: Price of Essential Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAMCHARAN BOHARA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1724

TO BE ANSWERED ON 06 th  March, 2018

## Price of Essential Drugs

## †1724. SHRI RAM CHARAN BOHRA:

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

- (a) whether  there  is  huge  difference/  anamolies  in  the  prices  of  essential  drugs  in  the country and if so, the details thereof;
- (b) whether  any  success  has  been  achieved  by  the  Government  through  the  campaigns launched under the present policy;
- (c) if so, the details thereof; and
- (d) the other steps proposed to be taken by the Government to make the essential drugs available at affordable prices to the people?

## 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): No,  Madam.  The  price  notification  of  National  Pharmaceutical  Pricing  Authority (NPPA) is followed by the pharmaceutical companies in general. Notices are issued to the pharmaceutical  companies  who  are  violating  the  notified  price  and  overcharging  patients under  various  provisions  of  Drugs  (Prices  Control)  Order,  1995  (DPCO,  1995)  /  Drugs (Prices Control) Order, 2013 (DPCO, 2013) read with Section 7A of Essential Commodities Act, 1955.
- DPCO, 2013 provides for fixing ceiling prices  of  essential  drugs  which  are  part  of National  List  of  Essential  Medicines  (NLEM).  NPPA  has  fixed  the  ceiling  prices  of  851 essential formulations under revised schedule of DPCO, 2013 resulting in the reduction of the prices as follows:

| Statement showing reduction in ceiling prices of scheduled formulations with respect to maximum price under NELM 2015 as on 28.2.2018   | Statement showing reduction in ceiling prices of scheduled formulations with respect to maximum price under NELM 2015 as on 28.2.2018   |
|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| %reduction with respect to Maximum Price                                                                                                | No. of scheduled formulations                                                                                                           |
| 0<= 5%                                                                                                                                  | 234                                                                                                                                     |
| 5<=10%                                                                                                                                  | 134                                                                                                                                     |
| 10<=15%                                                                                                                                 | 98                                                                                                                                      |
| 15<=20%                                                                                                                                 | 98                                                                                                                                      |
| 20<=25%                                                                                                                                 | 93                                                                                                                                      |
| 25<=30%                                                                                                                                 | 65                                                                                                                                      |

| 30<=35%                         |   46 |
|---------------------------------|------|
| 35<=40%                         |   24 |
| Above 40%                       |   59 |
| Total formulations in NLEM 2015 |  851 |

No person  is  authorised  to  sell  the  scheduled  formulation  at  a  price  exceeding  the ceiling price in the DPCO, 2013.

(b) & (c): NPPA  is  monitoring  the  prices  of  scheduled  medicines  and  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 price violation  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)' alongwith the analysis of price data from All Indian Origin Chemists  &  Distributors  Limited  -  Advanced  Working,  Action  &  Correction  System (AIOCD-AWACS).  NPPA  also  monitors  the  maximum  retail  price  of  non-scheduled formulations and ensures that the MRP of life saving medicine does not exceed more than ten percent  of  maximum  retail  price  during  preceding  twelve  months.  The  fixation  of  ceiling prices/MRP  under  DPCO  2013  has  resulted  in  a  total  estimated  saving  of  Rs.  11,365.61 crores to the public as follows:

| Particulars                                                | Saving to consumer ( Rs. in Crores)   |
|------------------------------------------------------------|---------------------------------------|
| Under NLEM, 2011 from May, 2015 to Feb, 2016               | 2,422.24                              |
| Under NLEM, 2015 from March, 2016 to till date (28.2.2018) | 2,643.37                              |
| Coronary Stents in Feb, 2017                               | 4,450                                 |
| Knee Implants in Aug, 2017                                 | 1,500                                 |
| Para 19 - Cardio and Anti Diabetic in Jul, 2014            | 350                                   |
| TOTAL -                                                    | Round off to 11365.61                 |

(d): The  National  Pharmaceuticals  Pricing  Policy  (NPPP),  2012  was  notified  on  7 th December, 2012, with  the  objective  to  put  in  place  a  regulatory  framework  for  pricing  of drugs so as to ensure availability of required medicines - 'essential medicines' at reasonable prices even while providing sufficient opportunity for innovation and competition to support the  growth  of  pharma  industry,  thereby  meeting  the  goals  of  employment  and  shared economic well-being for all.

*******