Lok Sabha Question No. 2049 (UNSTARRED), answered on 2024-08-02
Subject: Price Hike by NPPA
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Manickam Tagore B

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

LOK SABHA UNSTARRED QUESTION NO. 2049 TO BE ANSWERED ON 02 nd  August, 2024

## Price Hike by NPPA

## 2049 Shri Manickam Tagore B:

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

- (a) whether it is a fact that the National Pharmaceutical Pricing Authority (NPPA) had allowed price hike for select medicines in the country;
- (b) if so, the details thereof;
- (c) whether it is true that the Government has issued its annual list of revise ceiling prices for
- 933 scheduled drug formulations and revised retail prices of 65 formulations; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a)  &  (b):  As  per  the  extant  provisions  of  the  Drugs  (Prices  Control)  Order, 2013  (DPCO, 2013), the ceiling prices of scheduled formulations included in Schedule-I of DPCO, 2013 are fixed  by  the  National  Pharmaceutical  Pricing  Authority  (NPPA)  under  the  Department  of Pharmaceuticals  (DoP).  As  per  provisions  of  DPCO,  2013,  the  ceiling  prices  of  scheduled medicines are revised annually on the basis of Wholesale Price Index (WPI) (all commodities) for  preceding  calendar  year  on  or  before  1st  April  of  every  year,  which  is  notified  by  the Government on the 1st day of April every year.

The  WPI  increase  is  based  on  the  data  published  by  Department  for  Promotion  of Industry  and  Internal  Trade  (DPIIT),  Ministry  of  Commerce  and  Industry,  Government  of India. For the Financial year 2024-25, the annual change in WPI of all commodities worked out  as  0.00551%  during  the  calendar  year  2023  over  the  corresponding  period  in  2022. Accordingly, the ceiling prices of the formulations have been increased by 0.00551% w.e.f. 01.04.2024. Although, the annual permitted increase in the prices of Scheduled drugs is based on  the  increase  in  WPI  (all  commodities),  the  WPI  increase  is  the  maximum  permissible increase and may or may not be availed by the manufacturers based on market dynamics.

(c) & (d): Based on above WPI increase, ceiling prices of 923 formulations were notified vide S.O.  1547  (E)  to  1557  (E)  dated  26.03.2024.  Further,  ceiling  prices  of  3  more  scheduled formulations  were  notified  vide  S.O.  2286  (E),  S.O.  2289  (E)  and  S.O.  2290  (E)  dated 14.06.2024, thus making a total of 926 formulations under ceiling prices as on 29.07.2024.

Further, NPPA fixes the retail price of a new drug as defined in para 2(1)(u) of the DPCO,  2013  read  with  Para  5  of  DPCO,  2013  for  existing  manufacturers  of  scheduled formulations. The retail price of a new drug is applicable to the applicant manufacturer and marketer and they cannot sell the new drug above the price notified by NPPA. Fixation of retail prices is an ongoing process, based on Form I application filed by the companies. Till date, 2894 retail prices has been notified by NPPA under DPCO, 2013. The details of prices fixed by NPPA are available on the website of NPPA i.e., nppaindia.nic.in.

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