Lok Sabha Question No. 2518 (UNSTARRED), answered on 2019-12-03
Subject: Price of Branded Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dulal Chandra Goswami, Mitesh Rameshbhai (Bakabhai) Patel

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

LOK SABHA UNSTARRED QUESTION NO. 2518

TO BE ANSWERED ON 3 rd  December, 2019

## Price of Branded Medicines

## †2518. SHRI DULAL CHAND GOSWAMI: SHRI MITESH RAMESHBHAI PATEL (BAKABHAI):

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

- (a)  the  details  of  the  difference  between  the  prices  of  branded  and  generic medicines;

(b)  whether  the  prices  of  branded  medicines  are  independently  fixed  by  the companies or there is some price fixation mechanism in place and if so, the details thereof;

(c)  whether medicines are not available at generic medicine kendras due to which patients have to buy branded medicines; and

(d) the details of funds spent on promotion of PMBJP during the last five years?

## ANSWER

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

- (a) & (b): The National Pharmaceutical Pricing Authority (NPPA) fixes the ceiling price of scheduled medicines (branded or generic) 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.
- (c): No,  Sir.  The  Bureau  of  Pharma  PSUs  of  India  (BPPI),  the  implementing agency of Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) makes regular efforts  for  making  all  the  drugs  of  its  product  basket  available  to  the  consumers. Sometimes, some drugs are not available for non-receipt of valid bids for a particular drug in a tender floated by the BPPI/non-supply by a vendor. Product basket of BPPI comprises of 802 drugs and 155 surgicals. Presently, 667 drugs and 56 surgicals are available for sale at PMBJP kendras.
- (d): Bureau of Pharma PSUs of India (BPPI), the implementing agency of Pradhan Mantri  Bhartiya  Janaushadhi  Pariyojana  (PMBJP),  has been  spreading  awareness on Jan Aushadhi generic medicines through various types of advertisements such

Cinema Advertisements, Bus Brandings, State Transport Bus Stand Audio Advertisement, Digital Screen Advertisement at Railway Stations and social media platforms  like  facebook,  twitter  etc.  and  by  organizing  workshops.  Financial  year wise details of the amount spent for the publicity is as under:-

|   Sl. No. | Financial Year   | Amount in Rs.   |
|-----------|------------------|-----------------|
|         1 | 2014-15          | Rs. 0.52 Cr.    |
|         2 | 2015-16          | Rs. 0.94 Cr.    |
|         3 | 2016-17          | Rs. 2.61 Cr.    |
|         4 | 2017-18          | Rs. 4.74 Cr.    |
|         5 | 2018-19          | Rs. 6.60 Cr.    |

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