Lok Sabha Question No. 1622 (UNSTARRED), answered on 2022-02-11
Subject: Gap in Price of Branded and Janaushadhi Medicine
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Geeta Kora, Nishikant  Dubey, Goddeti Madhavi, Achyutananda Samanta, Hibi Eden, Dileshwar Kamait, Jyotirmay Singh Mahato, Jugal Kishore Sharma, Geetha Viswanath Vanga

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

LOK SABHA UNSTARRED QUESTION NO. 1622 TO BE ANSWERED ON THE 11 TH  FEBRUARY, 2022

Gap in Price of Branded and Janaushadhi Medicine

## †1622.  SHRIMATI GEETA KORA:

DR. NISHIKANT DUBEY:

SHRIMATI GODDETI MADHAVI:

SHRI ACHYUTANANDA SAMANTA:

SHRI HIBI EDEN:

SHRI DILESHWAR KAMAIT:

SHRI JYOTIRMAY SINGH MAHATO:

SHRI JUGAL KISHORE SHARMA:

SHRIMATI VANGA GEETHA VISWANATH:

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

- (a)  the  details  of  gap  in  cost/price  of  branded  medicines  and  medicines  being  provided  by Janaushadhi Kendras in the country;
- (b) whether the Government proposes to open more warehouses for storage of Janaushadhi/generic medicines under the PMBJP scheme and if so, the details thereof;
- (c) the steps being taken by the Government to ensure availability of medicine at Janaushadhi Kenrdas so that patients are not compelled to buy branded medicines at higher prices and if so, the details thereof;
- (d) whether medicines being imported are costlier than generic medicine and if so, the details thereof and the reasons therefor; and
- (e)  the  details  of  steps  taken/being  taken  to  create  awareness  about  efficacy  of  generic medicines and build confidence among poor people?

## ANSWER

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

- (a): Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) being implemented by the Department of Pharmaceuticals, a medicine is priced on the principle of maximum of 50% of average price of the top three brands of the said medicine. Thus, the prices of Jan Aushadhi Medicines are cheaper at least by 50% and in some cases, by 80% to 90% of the market price of the branded medicines.
- (b): Pharmaceuticals & Medical Devices Bureau of India (PMBI), the implementing agency of the  Scheme has  presently  its  warehouses  situated  at  Gurugram,  Chennai  and  Guwahati.  In

addition,  there  are  39  number  of  distributors  spread  all  across  the  country.    A  total  of  six warehouses are envisaged by March 2025.

- (c): As on 31.01.2022, about 8,675 PMBJP Kendras have been opened in all the districts of the country so as to ensure accessibility of quality affordable generic medicines. In order to ensure availability of medicines, an Information Technology (IT) enabled End-to-End supply chain system with Point-of-Sale (POS) application for value added services has been implemented by PMBI to monitor end to end supply chain management system. All warehouses have SAP based  inventory  management  system  and  the  demand  forecasting  is  done  through  the  said system so as to place orders as per the desired inventory levels.
- (d): National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals regulates the prices of all drugs - whether branded or generic. While it fixes the ceiling price of scheduled medicines specified in the first schedule of the Drugs (Prices Control) Order, 2013, in case of non-scheduled medicines, the manufactures are free to fix Maximum Retail Price (MRP) of the drug. However, DPCO provides that the same do not increase by more than 10% of their MRP during the preceding twelve months. The details of retail/ceiling prices fixed/revised by NPPA  are available on NPPA's  website, viz., www.nppaindia.nic.in.

(e):  PMBI spreads awareness about generic medicines through various types of advertisements such as TV, FM Radio, Auto wrapping, Cinema, Bus Brandings, State Transport Bus Stands, Digital Screen Advertisement at Railway Stations, etc.  In addition, PMBI also educates the public regularly about usages of Jan Aushadhi generic medicines through various social media platforms  like  Facebook,  Twitter,  Instagram,  YouTube,  etc.  The  Bureau  also  organizes seminars  and  workshops  to  spread  awareness  about  the  scheme.  Further,  to  propagate achievements of the scheme and create awareness about its benefits Jan Aushadhi Diwas is celebrated every year on 7 th March.

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