Lok Sabha Question No. 3893 (UNSTARRED), answered on 2020-03-17
Subject: Price Hike of Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: P. Velusamy, K. Shanmuga Sundaram

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

LOK SABHA UNSTARRED QUESTION NO. 3893 TO BE ANSWERED ON 17 th  March, 2020

## Price Hike of Drugs

## 3893.  SHRI VELUSAMY P.: SHRI SHANMUGA SUNDARAM K.:

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

- (a)  whether the Government has any proposal to increase the prices of commonly used  medicines  like  key  antibiotics,  anti-allergies  and  anti-malaria  drugs,  BCG vaccine and Vitamin C which are being used by the poor people on daily basis;
- (b) if so, the details thereof;
- (c) whether the NPPA has informed that the prices are increased by 50 per cent in the interest of the public;
- (d) if so, the clarification regarding public interest which necessitated exorbitant price rise at this time of slow-down of the economy; and
- (e) whether paragraph 19 of the Drug Prices Control Order 2013 has been used to reduce the drug prices but not for increasing the prices of common drugs and if not, the reasons therefor?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

(a)  to  (c):  The  National  Pharmaceutical  Pricing  Authority  (NPPA)  has  received applications for upward price revision under para 19 of the Drugs (Prices Control) Order, 2013 (DPCO, 2013) citing various reasons like increase in Active Pharmaceutical Ingredient (API) cost, increase in cost of production, exchange rate variation etc. resulting in unviability in sustainable production and marketing of the drugs.  Based  on  the  recommendation  of  Standing  Committee  on  Affordable Medicines and Health Products (SCAMHP), ceiling price of shortlisted 21 scheduled formulations  of  12  medicines  were  revised  by  allowing  one  time  price  increase  of upto 50% from the present ceiling price in public interest as an exceptional measure by invoking para 19 of the DPCO, 2013. The detail of price revision is as below:

| Sl. No.   | Name of the Scheduled Formulation   | Dosage form & Strength            | Unit      | Revised Ceiling Price (Rs.)   |
|-----------|-------------------------------------|-----------------------------------|-----------|-------------------------------|
| (1)       | (2)                                 | (3)                               | (4)       | (5)                           |
| 1.        | BCG vaccine                         |                                   | Each Dose | 8.75                          |
| 2.        | Benzathine benzylpenicillin         | Powder for Injection 12 lac units | Each Pack | 17.84                         |
| 3.        | Benzathine                          | Powder for Injection 6            | Each      | 11.81                         |

|    | benzylpenicillin                                        | lac units                         | Pack      |      |
|----|---------------------------------------------------------|-----------------------------------|-----------|------|
|  4 | Benzyl penicillin                                       | Powder for Injection 10 Lac Units | Each Pack | 7.64 |
|  5 | Chloroquine                                             | Tablet 150mg                      | 1 Tablet  | 1.16 |
|  6 | Dapsone                                                 | Tablet 100 mg                     | 1 Tablet  | 0.35 |
|  7 | Furosemide                                              | Tablet 40 mg                      | 1 Tablet  | 0.74 |
|  8 | Furosemide                                              | Injection 10mg/ml                 | 1 ml      | 2.43 |
|  9 | Metronidazole                                           | Oral Liquid 200 mg/5ml            | 1 ml      | 0.44 |
| 10 | Metronidazole                                           | Tablet 200 mg                     | 1 Tablet  | 0.68 |
| 11 | Metronidazole                                           | Tablet 400 mg                     | 1 Tablet  | 1.25 |
| 12 | Metronidazole                                           | Injection 500mg/100ml             | 1 ml      | 0.2  |
| 13 | Ascorbic Acid (Vitamin C)                               | Tablet 500 mg                     | 1 Tablet  | 1.34 |
| 14 | Co-trimoxazole (Sulphamethoxazole (A)+Trimethoprim (B)] | Tablet 400 mg(A)+80 mg(B)         | 1 Tablet  | 0.77 |
| 15 | Co-trimoxazole (Sulphamethoxazole (A)+Trimethoprim (B)] | Tablet 800 mg(A)+160 mg(B)        | 1 Tablet  | 1.98 |
| 16 | Co-trimoxazole (Sulphamethoxazole (A)+Trimethoprim (B)] | Oral Liquid 200mg(A)+40mg(B)/5ml  | 1 ml      | 0.32 |
| 17 | Pheniramine                                             | Injection 22.75 mg/ml(10ml pack)  | 1 ml      | 1.67 |
| 18 | Pheniramine                                             | Injection 22.75 mg/ml (2ml pack)  | 1 ml      | 2.24 |
| 19 | Prednisolone                                            | Drops 1%                          | 1 ml      | 4.92 |
| 20 | Clofazimine                                             | Capsule 50 mg                     | 1 Capsule | 2.13 |
| 21 | Clofazimine                                             | Capsule 100 mg                    | 1 Capsule | 3.63 |

(d): A Committee comprising of Adviser (Cost), Adviser DGHS and Deputy Drug Controller, DCGI under the convenorship of Director (Pricing), NPPA examined such formulations  based  on  parameters  of  essentiality,  market  share  of  the  applicant company  and  available alternatives etc. It was  noted  that these scheduled formulations are low priced drugs and have been under repeated price control. Most of these drugs are used as first line of treatment and are crucial to the public health program  of  the  country.  Many  companies  have  applied  for  discontinuation  of  the product on account of unviability. Therefore, these formulations were considered for upward  price  revision  to  enable  manufacturing  and  continued  availability  to  the consumers.

(e): The  Paragraph  19  of  the  DPCO,  2013  has  been  used  to  reduce  the  drug price, however the provisions also provides that in case of extra-ordinary circumstances  the  Government  may  allow  an  increase  or  decrease  in  the  ceiling price or the retail price, as the case may be, irrespective of annual wholesale price index for that year in public interest.

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