Lok Sabha Question No. 4154 (UNSTARRED), answered on 2024-12-20
Subject: Rise in Ceiling Prices of Scheduled Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Gaurav Gogoi

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

LOK SABHA UNSTARRED QUESTION NO. 4154 TO BE ANSWERED ON 20 th  DECEMBER, 2024

## Rise in Ceiling Prices of Scheduled Drugs

## 4154. Shri Gaurav Gogoi:

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

- (a) the primary factors contributing to the recent increase in ceiling prices of scheduled drugs in the country;
- (b)  the  steps  taken  by  the  Government  to  ensure  that  these  price  increases  do  not disproportionately affect vulnerable populations, such as low-income individuals and senior citizens;
- (c) the mechanism of the Government to monitor the impact of these price increases on patients' affordability and ensure adherence to treatment regimens;
- (d)  whether  the  Government  will  implement  stricter  price  control  mechanisms  or  other regulatory interventions to mitigate the impact of rising drug prices; and
- (e) the manner in which the Government is promoting the production and availability of generic medicines to reduce the cost of treatment for patients?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(a) to (d): National Pharmaceutical Pricing Authority  (NPPA)  under  Department  of Pharmaceuticals,  fixes  the  ceiling  price  of  medicines  included  in  Schedule-I  of  the  Drugs (Prices Control) Order, 2013 (DPCO, 2013) in accordance with the provisions of DPCO, 2013. As per the provisions of DPCO 2013, the ceiling prices of scheduled medicines are revised annually on the basis of Wholesale Price Index (WPI) (all commodities) for the preceding calendar year on or before 1 st April of every year.  The ceiling prices of scheduled medicines for the year 2024-25 were increased by 0.00551% w.e.f. 01.04.2024 based on annual change in the WPI  (all commodities). Further, NPPA  received  applications from various pharmaceutical manufacturing/marketing companies and industry associations requesting for upward revision of price for some of the formulation(s) on the grounds of increase in cost of production, increase in cost of active pharmaceuticals ingredients (APIs), changes in exchange rate, request for discontinuation of some of the formulations etc. that made supply of such drugs at existing rates unviable.  After detailed scrutiny, NPPA approved increase in the price of 11 formulations  of  8  drugs  to  ensure  their  continued  availability  so  that  the  public  including vulnerable population is not forced to switch to expensive alternatives due to non-availability of these drugs in the market.

All  manufactures  of  scheduled  medicines  (branded  or  generic)  have  to  sell  their products within the ceiling price (plus applicable Goods and Service Tax) fixed by the NPPA. The prices of both scheduled and non-scheduled drugs are monitored by NPPA. Monitoring activities are based on references from Price Monitoring Resource Units (PMRUs), State Drugs

Controllers (SDCs), market samples, market-based databases, and complaints received through the Pharma Jan Samadhan (PJS) portal, CPGRAMS, and other reliable sources. Instances of overcharging are dealt by NPPA under the relevant provisions of DPCO, 2013.

(e): The Government has taken various measures to promote the production and availability of generic medicine which inter alia include the Production Linked Incentive (PLI) scheme for Pharmaceuticals, PLI Scheme for critical Key Starting Materials, Drug Intermediates & Active Pharmaceutical Ingredients, the Bulk Drug Park Scheme, Scheme for Promotion of Research and Innovation in the Pharma-Meditech Sector,  provision of quality generic medicines at 50%90%  cheaper  rates  than  branded  medicines  under  Pradhan  Mantri  Bhartiya  Janaushadhi Pariyojana through Jan Aushadhi Kendras opened across the country etc.  In addition, Ministry of  Health  &  Family  Welfare,  Government  of  India  is  implementing Free  Drugs  Service Initiative (FDSI) under NHM to provide technical and financial support to States and Union Territories  to  improve  access  to  free  medicines  and  ensure  the  availability  of  essential medicines for patients at all level of facilities.

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