Lok Sabha Question No. 1049 (UNSTARRED), answered on 2021-12-03
Subject: Price of Branded and Generic Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dulal Chandra Goswami

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

LOK SABHA UNSTARRED QUESTION NO. †1049

TO BE ANSWERED ON 3 rd  December, 2021

## Price of Branded and Generic Medicines

## †1049. SHRI DULAL CHAND GOSWAMI:

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

- (a)  the  reasons  for  difference  between  the  prices  of  branded  and  generic  medicines  in  the country;
- (b) whether the companies are free to decide the prices of branded medicines or there is any institutional pricing mechanism for this;
- (c)  the  number  of  Jan  Aushadhi  Kendras  opened  under  the  Pradhan  Mantri  Bhartiya Janaushadhi  Pariyojana  (PMBJP)  for  the  purpose  of  providing  generic  medicines  to  the patients, State/UT-wise;

(d)  whether  medicines  are  not  available  at  generic  drug  centres  due  to  which  patients  are compelled  to  buy  branded  medicines,  if  so,  the  details  thereof  and  the  response  of  the Government thereto; and

(e) the details of the amount spent on promoting PMBJP in the last five years?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (DR. MANSUKH MANDAVIYA)

(a)  &  (b):  National  Pharmaceutical  Pricing  Authority  (NPPA)  under  the  Department  of Pharmaceuticals (DoP) regulates the price of drugs as per provisions of Drugs Price Control Order,  2013  (DPCO,  2013)  based  upon  the  National  Pharmaceutical  Pricing  Policy,  2012 (NPPP,  2012),  which  follows  the  principles  of  essentiality  and  market-based  pricing.  The DPCO, 2013 mandates the fixation of ceiling price based on average price in the market in respect of scheduled formulations (branded or generic) listed in the National List of Essential Medicines (NLEM) and allows an annual price rise based on Wholesale Price Index (WPI). DPCO, 2013 further mandates monitoring of retail price fixed by manufacturers in respect of non-scheduled formulations (branded or generic) allowing an annual price increase of up to 10%. Instances of overcharging are dealt with by NPPA under the relevant provisions of DPCO 2013.

- (c): Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) implemented by the Department of Pharmaceuticals, as on 28.11.2021, about 8,533 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) are functional across the country, covering all districts of the country. State/UT wise list of PMBJKs is at Annexure .
- (d): The  product  basket  of  PMBJP  comprises  1,451  medicines  and  240  surgical  and consumables. Pharmaceuticals & Medical Devices Bureau of India (PMBI), 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. Floating tenders are issued regularly by PMBI as an ongoing process for required medicines to avoid any stock-out situation.

## (e): The details  of  the  amount  spent  for  promoting  PMBJP  scheme  during  the  last  five financial years are as under:

| Financial Year   | Amount in Rs.   |
|------------------|-----------------|
| 2016-17          | Rs. 2.61 Cr.    |
| 2017-18          | Rs. 4.74 Cr.    |
| 2018-19          | Rs. 6.60 Cr.    |
| 2019-20          | Rs. 5.70 Cr.    |
| 2020-21          | Rs. 13.62 Cr.   |
| Total            | Rs. 33.27 Cr.   |

## Annexure Annexure referred in Reply to Part (c) of the Unstarred Question No. 1049 on 'Price of Branded and Generic Medicines'

|   State-wise/UT Sl. No. | wise list of PMBJP Kendra, across the Name of the State/UT   |   as on 28.11.2021 No. of PMBJP kendras functional |
|-------------------------|--------------------------------------------------------------|----------------------------------------------------|
|                       1 | Andaman &Nicobar                                             |                                                  3 |
|                       2 | Andhra Pradesh                                               |                                                183 |
|                       3 | Arunachal Pradesh                                            |                                                 28 |
|                       4 | Assam                                                        |                                                 86 |
|                       5 | Bihar                                                        |                                                271 |
|                       6 | Chandigarh                                                   |                                                  7 |
|                       7 | Chhattisgarh                                                 |                                                241 |
|                       8 | Delhi                                                        |                                                374 |
|                       9 | Goa                                                          |                                                 10 |
|                      10 | Gujarat                                                      |                                                551 |
|                      11 | Haryana                                                      |                                                231 |
|                      12 | Himachal Pradesh                                             |                                                 63 |
|                      13 | Jammu And Kashmir                                            |                                                119 |
|                      14 | Jharkhand                                                    |                                                 75 |
|                      15 | Karnataka                                                    |                                                954 |
|                      16 | Kerala                                                       |                                                935 |
|                      17 | Ladakh                                                       |                                                  2 |
|                      18 | Lakshadweep*                                                 |                                                  0 |
|                      19 | Madhya Pradesh                                               |                                                239 |
|                      20 | Maharashtra                                                  |                                                623 |
|                      21 | Manipur                                                      |                                                 33 |
|                      22 | Meghalaya                                                    |                                                 15 |
|                      23 | Mizoram                                                      |                                                 22 |
|                      24 | Nagaland                                                     |                                                 16 |
|                      25 | Odisha                                                       |                                                344 |
|                      26 | Puducherry                                                   |                                                 18 |
|                      27 | Punjab                                                       |                                                302 |
|                      28 | Rajasthan                                                    |                                                137 |
|                      29 | Sikkim                                                       |                                                  3 |
|                      30 | Tamil Nadu                                                   |                                                858 |
|                      31 | Telangana                                                    |                                                157 |
|                      32 | Dadra And Nagar Haveli And Daman And Diu                     |                                                 36 |
|                      33 | Tripura                                                      |                                                 24 |
|                      34 | Uttar Pradesh                                                |                                               1177 |
|                      35 | Uttarakhand                                                  |                                                214 |
|                      36 | West Bengal                                                  |                                                182 |