Lok Sabha Question No. 3437 (UNSTARRED), answered on 2022-08-05
Subject: Price Hike in Scheduled Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Imtiaz Jaleel Syed

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

LOK SABHA UNSTARRED QUESTION NO. 3437 TO BE ANSWERED ON 05 th  August, 2022

## Price Hike in Scheduled Drugs

## 3437. SHRI SYED IMTIAZ JALEEL:

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

- (a) whether the National Pharmaceutical Pricing Authority (NPPA) has allowed a price hike of
- 10.7 percent for the scheduled drugs which are under price control as on March 28th, 2022, if so, the details thereof;
- (b) whether the prices of scheduled drugs have been hiked by 10.7 percent with the approval of India's drug Pricing Authority, if so, the details thereof along with the names of the drugs whose price have been hiked;
- (c) whether the hike in prices of scheduled medicines are also applicable for the drugs available at  the  Jan  Aushadhi  Kendras  established  under  Pradhan  Mantri  Bhartiya  Janaushadhi Pariyojana (PMBJP), if so, the details thereof; and
- (d)  the  details  of  the  measures  taken  by  the  Government  to  retain/stabilize  the  price  of medicines selling in Jan Aushadhi Kendras under PMBJP after such price hike?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) and (b):  As per the extant provisions of the Drugs (Prices Control) Order, 2013 (DPCO, 2013), the ceiling prices of scheduled formulations (branded or generic) as per Schedule-I of DPCO, 2013 are fixed by the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals. As per provisions of DPCO 2013, annual revision of ceiling prices of scheduled medicines is permissible based on Wholesale Price Index (WPI) for all commodities for the preceding year.

The Compounded Annual Growth Rate (CAGR) of WPI for the last 5 years is 4.12%. The annual change in WPI of all commodities with base year 2011-12 works out as 10.76607% during the calendar year 2021 over the corresponding period in 2020. Accordingly, the ceiling price of 898 scheduled formulations (of which 889 scheduled formulations fixed under NLEM 2015) were revised based on WPI effective from 01.04.2022. The relevant notification, S.O. No. 1499(E) dated 30.03.2022 showing the list  of medicines is  available at the website of NPPA, viz., nppaindia.nic.in. The WPI increase is the maximum increase permissible and may or may not be availed by the manufacturers. It is further clarified that prices are increased or decreased  by  the  manufacturers  based  on  market  dynamics,  within  the  ceiling,  wherever prescribed, by NPPA.

(c) & (d): With an objective of making quality generic medicines available at affordable prices to all citizens, especially the  poor  and  the deprived  ones, Pradhan  Mantri  Bhartiya Janaushadhi  Pariyojana (PMBJP)  was  launched  by  the  government.  Under  the  Scheme, dedicated outlets known as Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) have been opened to provide quality generic medicines at affordable prices. All manufacturers of scheduled medicines (including those sold through Jan Aushadhi Kendras) have to sell the same within the ceiling price or ceiling price (as revised based on WPI). PMBI fixes the prices of medicines sold through the Kendras at least 50% cheaper than that of branded medicines available in the open market.

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