Lok Sabha Question No. 221 (STARRED), answered on 2019-07-09
Subject: Branded and Generic Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Deepak Baij

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

LOK SABHA STARRED QUESTION NO. *221 TO BE ANSWERED ON 9 th  July, 2019

## Branded and Generic Medicines

## †*221. SHRI DEEPAK BAIJ:

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

- (a) the  difference  in  price  between  branded  and  generic  medicines  along  with  the details of the mechanism for fixation of price of branded medicines manufactured by the companies;
- (b) whether the companies are at liberty to fix the prices of branded medicines and if so, the details thereof;
- (c) the number of medicine stores opened under the Pradhan Mantri Jan Aushadhi Yojana  to  provide  generic  medicines  to  the  patients  during  the  last  five  years, State-wise;
- (d) whether medicines are not available in the generic medicine centres due to which patients are forced to buy branded medicines; and
- (e) the details  of  the  amount  spent for  the publicity  of  the  said  scheme  during  the above period?

## ANSWER

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

- (a) to (e): A statement is laid on the Table of the House.

## Statement referred to in reply to Lok Sabha Starred Question No. *221 for answer on 09/07/2019 regarding Branded and Generic Medicines

(a) & (b): The  National  Pharmaceutical  Pricing  Authority  (NPPA)  fixes  the  ceiling price of scheduled medicines specified in the first schedule of the Drugs (Prices Control) Order, 2013 (DPCO) in accordance with the provisions of the DPCO. All manufacturers of  scheduled  medicines  (branded  or  generic)  have  to  sell  their  products  within  the ceiling price (plus applicable local taxes) fixed by the NPPA. A manufacturer is at liberty to  fix  the  maximum  retail  price  of  a  non-scheduled  formulation  (branded  or  generic) launched  by  it.  However,  as  per  the  DPCO,  the  manufacturers  of  non-scheduled formulations are not allowed to increase the maximum retail price of such formulations by more than 10 % per annum.

The medicines sold under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) are generic and normally cheaper by 50-90% of average price of top 3 brands of corresponding medicines.

(c): In last five years i.e. from 01.04.2014 to 31.03.2019, total 5028 PMBJP kendras were opened across the country. The state-wise breakup of this information is given at Annexure.

(d): The  product  basket  of  PMBJP  currently  comprises  900  medicines  and  154 surgicals  and  consumable  items.  Out  of  this  product  basket,  714  medicines  and  53 surgicals are presently available for sale at PMBJP kendras. The purchase orders for procurement of 24 medicines and 90 surgical items have already been issued and these medicines / surgicals will be available for sale at PMBJP kendras in next two months. For  162 medicines and 11 surgical items, no bids were received in last two tenders. Floating tenders for required medicines is an ongoing process.

(e): The details of the amount of money spent on the publicity of PMBJP during the last 5 years are as follows:

|   Sl. No. | Financial Year   |   Amount (Rs. Cr) |
|-----------|------------------|-------------------|
|         1 | 2014-15          |              0.52 |
|         2 | 2015-16          |              0.94 |
|         3 | 2016-17          |              2.61 |
|         4 | 2017-18          |              4.74 |
|         5 | 2018-19          |              6.6  |

## Annexure

| State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   | State-wise breakup of PMBJP kendras opened from 01.04.2014 to 31.03.2019   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Sl. No.                                                                    | Name of the State                                                          | 2014-15                                                                    | 2015-16                                                                    | 2016-17                                                                    | 2017-18                                                                    | 2018-19                                                                    | Total                                                                      |
| 1                                                                          | Andaman & Nicobar                                                          | 0                                                                          | 0                                                                          | 0                                                                          | 0                                                                          | 2                                                                          | 2                                                                          |
| 2                                                                          | Andhra Pradesh                                                             | 0                                                                          | 0                                                                          | 53                                                                         | 81                                                                         | 45                                                                         | 179                                                                        |
| 3                                                                          | Arunachal Pradesh                                                          | 0                                                                          | 0                                                                          | 14                                                                         | 10                                                                         | 0                                                                          | 24                                                                         |
| 4                                                                          | Assam                                                                      | 0                                                                          | 0                                                                          | 16                                                                         | 36                                                                         | 24                                                                         | 76                                                                         |
| 5                                                                          | Bihar                                                                      | 0                                                                          | 1                                                                          | 3                                                                          | 99                                                                         | 46                                                                         | 149                                                                        |
| 6                                                                          | Chandigarh                                                                 | 0                                                                          | 0                                                                          | 1                                                                          | 0                                                                          | 1                                                                          | 2                                                                          |
| 7                                                                          | Chhattisgarh                                                               | 0                                                                          | 108                                                                        | 36                                                                         | 51                                                                         | 11                                                                         | 206                                                                        |
| 8                                                                          | Dadar & Nagar Haveli                                                       | 0                                                                          | 0                                                                          | 0                                                                          | 7                                                                          | 6                                                                          | 13                                                                         |
| 9                                                                          | Daman & Diu                                                                | 0                                                                          | 0                                                                          | 0                                                                          | 3                                                                          | 1                                                                          | 4                                                                          |
| 10                                                                         | Delhi                                                                      | 0                                                                          | 4                                                                          | 6                                                                          | 29                                                                         | 35                                                                         | 74                                                                         |
| 11                                                                         | Goa                                                                        | 0                                                                          | 0                                                                          | 0                                                                          | 0                                                                          | 8                                                                          | 8                                                                          |
| 12                                                                         | Gujarat                                                                    | 0                                                                          | 7                                                                          | 82                                                                         | 159                                                                        | 227                                                                        | 475                                                                        |
| 13                                                                         | Haryana                                                                    | 1                                                                          | 2                                                                          | 17                                                                         | 58                                                                         | 61                                                                         | 139                                                                        |
| 14                                                                         | Himachal Pradesh                                                           | 0                                                                          | 2                                                                          | 5                                                                          | 14                                                                         | 26                                                                         | 47                                                                         |
| 15                                                                         | Jammu and Kashmir                                                          | 5                                                                          | 0                                                                          | 5                                                                          | 17                                                                         | 21                                                                         | 48                                                                         |
| 16                                                                         | Jharkhand                                                                  | 0                                                                          | 0                                                                          | 8                                                                          | 28                                                                         | 10                                                                         | 46                                                                         |
| 17                                                                         | Karnataka                                                                  | 0                                                                          | 1                                                                          | 27                                                                         | 256                                                                        | 191                                                                        | 475                                                                        |
| 18                                                                         | Kerala                                                                     | 0                                                                          | 3                                                                          | 157                                                                        | 167                                                                        | 123                                                                        | 450                                                                        |
| 19                                                                         | Madhya Pradesh                                                             | 1                                                                          | 2                                                                          | 16                                                                         | 44                                                                         | 71                                                                         | 134                                                                        |
| 20                                                                         | Maharashtra                                                                | 1                                                                          | 11                                                                         | 41                                                                         | 140                                                                        | 126                                                                        | 319                                                                        |
| 21                                                                         | Manipur                                                                    | 0                                                                          | 0                                                                          | 0                                                                          | 35                                                                         | 0                                                                          | 35                                                                         |
| 22                                                                         | Meghalaya                                                                  | 0                                                                          | 0                                                                          | 0                                                                          | 1                                                                          | 0                                                                          | 1                                                                          |
| 23                                                                         | Mizoram                                                                    | 1                                                                          | 0                                                                          | 2                                                                          | 5                                                                          | 9                                                                          | 17                                                                         |
| 24                                                                         | Nagaland                                                                   | 0                                                                          | 0                                                                          | 11                                                                         | 0                                                                          | 4                                                                          | 15                                                                         |
| 25                                                                         | Odisha                                                                     | 1                                                                          | 1                                                                          | 5                                                                          | 47                                                                         | 72                                                                         | 126                                                                        |
| 26                                                                         | Puducherry                                                                 | 0                                                                          | 0                                                                          | 0                                                                          | 11                                                                         | 3                                                                          | 14                                                                         |
| 27                                                                         | Punjab                                                                     | 0                                                                          | 2                                                                          | 3                                                                          | 57                                                                         | 66                                                                         | 128                                                                        |
| 28                                                                         | Rajasthan                                                                  | 0                                                                          | 1                                                                          | 20                                                                         | 68                                                                         | 31                                                                         | 120                                                                        |
| 29                                                                         | Sikkim                                                                     | 0                                                                          | 0                                                                          | 0                                                                          | 2                                                                          | 0                                                                          | 2                                                                          |
| 30                                                                         | Tamil Nadu                                                                 | 0                                                                          | 0                                                                          | 38                                                                         | 253                                                                        | 207                                                                        | 498                                                                        |
| 31                                                                         | Telangana                                                                  | 0                                                                          | 1                                                                          | 16                                                                         | 61                                                                         | 34                                                                         | 112                                                                        |
| 32                                                                         | Tripura                                                                    | 3                                                                          | 3                                                                          | 1                                                                          | 14                                                                         | 2                                                                          | 23                                                                         |
| 33                                                                         | Uttar Pradesh                                                              | 1                                                                          | 5                                                                          | 122                                                                        | 380                                                                        | 299                                                                        | 807                                                                        |
| 34                                                                         | Uttarakhand                                                                | 0                                                                          | 0                                                                          | 16                                                                         | 79                                                                         | 66                                                                         | 161                                                                        |
| 35                                                                         | West Bengal                                                                | 0                                                                          | 0                                                                          | 4                                                                          | 52                                                                         | 43                                                                         | 99                                                                         |
|                                                                            | Total                                                                      | 14                                                                         | 154                                                                        | 725                                                                        | 2264                                                                       | 1871                                                                       | 5028                                                                       |

*The administration of the Union Territory of Lakshadweep is directly procuring PMBJP medicines from the Bureau of Public Sector Undertakings of India (BPPI) and provides these medicines freeof-cost to the public.