Lok Sabha Question No. 4881 (UNSTARRED), answered on 2022-04-01
Subject: Regulation of Drug Prices
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Manoj Rajoria, Sumedhanand Saraswati, Ranjeeta Koli

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

LOK SABHA UNSTARRED QUESTION NO. †4881 TO BE ANSWERED ON 01 st  April, 2022

## Regulation of Drug Prices

†4881. DR. MANOJ RAJORIA: SHRI SUMEDHANAND SARASWATI: SHRIMATI RANJEETA KOLI:

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

- (a) the percentage increase in the prices of drugs during the last five years, drug-wise;
- (b) the details of the drugs of which prices have come down during the said period, drug-wise;
- (c)  whether  the  manufacturers  of  drugs  have  sought  permission  from  the  Government  to increase the prices of certain drugs;
- (d) if so, the details thereof and the reaction of the Government thereto; and
- (e) whether there are any rules and regulations regarding controlling of increase in prices of drugs and if so, the details thereof?

## ANSWER

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

(a) and (b): As per the extant provisions of Drugs Prices Control Order, 2013 (DPCO, 2013), the  ceiling  price  of  all  scheduled  formulations  figuring  in  the  National  List  of  Essential Medicines (NLEM) issued by the Ministry of Health & Family Welfare (M/o H&FW) are fixed by  the  National  Pharmaceutical  Pricing  Authority  (NPPA)  under  the  Department  of Pharmaceuticals. The ceiling prices of scheduled medicines are revised annually on the basis of Wholesale Price Index (WPI) for preceding calendar year on or before 1 st April of every year, which is notified by the Government on the 1 st day of April every year. The WPI revision notified by NPPA during the last five years is as under:

|   Year | WPI Increase/Decrease (%)   |
|--------|-----------------------------|
|   2021 | 0.53638%                    |
|   2020 | 1.884668%                   |
|   2019 | 4.2662%                     |
|   2018 | 3.43812%                    |
|   2017 | 1.97186%                    |

The details of retail/ceiling prices fixed/revised by NPPA are available on its website at www.nppaindia.nic.in.

(c)  &  (d):  Representations  from  manufacturers  of  drugs  are  received  from  time  to time  by NPPA for upward revision  of  prices  of  the  drugs  on  account  of  increase  in  raw  material, transportation and other input costs, etc. These representations are examined and considered by NPPA after scrutiny. NPPA has invoked extraordinary powers in public interest under para 19 of DPCO, 2013 for upward revision of the ceiling prices of 30 scheduled formulations of 15 drugs by giving one time increase of 50% from the extant ceiling price in December 2019 and  July  2021  respectively.  Details  of  the  same  are  available  on  NPPA's  website  at www.nppaindia.nic.in.

(e): As per the extant provisions of DPCO, 2013, the ceiling price of all scheduled formulations figuring in NLEM are fixed by NPPA. All manufacturers of these scheduled drugs are required to sell their products at a price equal to or lower than the ceiling price. Further, NPPA monitors the prices of non-scheduled drugs so as to ensure that increase in their Maximum Retail Price (MRP) is not more than 10% of what was prevalent during the preceding twelve months. The details  of  various  medicines  under  price  control  are  available  on  the  website  of  NPPA  at www.nppaindia.nic.in.

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