Lok Sabha Question No. 1462 (UNSTARRED), answered on 2023-07-28
Subject: Selling Price and MRP of Non-Essential Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Mala Roy

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

LOK SABHA UNSTARRED QUESTION NO. 1462 TO BE ANSWERED ON 28 th  July, 2023

## Selling Price and MRP of Non-Essential Drugs

## 1462. SHRIMATI MALA ROY:

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

- (a) whether the Government is aware that there is a significant markup between the sale price and maximum retail price of non-essential drugs;
- (b) if so, the details thereof;
- (c) whether the Government is aware that drug prices constitute a very significant percentage of Out of pocket expenditure in health sector;
- (d) if so, the details thereof; and
- (e) the steps taken/proposed to be taken by the Government in this regard?

## ANSWER

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

(a) & (b):    The prices of drugs are regulated as per the provision of  Drugs (Prices Control) Order, 2013 (DPCO, 2013).  National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals regulates and monitors the prices of drugs as per the provisions of  DPCO, 2013.  The DPCO, 2013 provides for monitoring the increase in prices of nonscheduled formulations [i.e., drugs not included in the National List of Essential Medicines (NLEM) that is notified by Ministry of Health and Family Welfare (MoHF&W)] and such medicines are not allowed to increase the maximum retail price (MRP) by more than 10% of the MRP during preceding twelve months.

(c) to (d):   As per the National Health Accounts Estimates 2019-20, brought out by MoHF&W in the year 2023, Household's Out of Pocket Expenditure on health is 41.1% of the Total Health Expenditure (THE). Further for the same period, the total Pharmaceutical Expenditure (includes  prescribed  medicines,  over-the-counter  drugs,  and  those  provided during an inpatient, outpatient, or any other event involving contact with health system) is 35.1% of the Current Health Expenditure.

(e): The  government  has  undertaken  several  initiatives  to  bring  down  Out-of-Pocket Expenditure on drugs in the country. Some of these initiatives include regulation of prices of drugs  by  NPPA;  provision  of  quality  generic  medicines  at  significantly  cheaper  rates through  the Pradhan Mantri Bhartiya Janaushadhi Kendreas under Pradhan Mantri Bhartiya Janaushadhi  Pariyojana  (PMBJP);  Pradhan  Mantri  Jan  Arogya  Yojana  (PM-JAY)  under Ayushman Bharat - a government-funded insurance scheme; Free Drugs Service Initiative of National Health Mission (NHM) under which support is provided for provision of essential drugs free of  cost  in  public  health  facilities;  Free  Treatment  for  TB  under  RNTCP; Janani Shishu Suraksha Karyakram for all pregnant women and children upto the age of one year; and Pradhan Mantri Ayushman Bharat Health Infrastructure Mission to strengthen grass root public health institutions to universal comprehensive primary healthcare services including diagnostics and treatment to critical care services.