Lok Sabha Question No. 329 (UNSTARRED), answered on 2015-12-01
Subject: Drugs under DPCO
Ministry: CHEMICALS AND FERTILIZERS
Asked by: KAVITHA KALVAKUNTLA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF PHARMACEUTICALS

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## LOK SABHA

## UNSTARRED QUESTION NO. 329

TO BE ANSWERED ON 1 st  DECEMBER,   2015

## Drugs under DPCO

## 329. SHRIMATI KAVITHA KALVAKUNTLA:

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

- (a) the  total  number  of  drugs  that  have  been  added  to  be  brought  under  the  Drug  price Control Orders (DPCO) for price control in the current year along with the details of drugs specifically included for Cancer, Aids, Diabetes and Cardio vascular ailments;
- (b) the  financial  benefits  that  have  accrued  to  the  patients  as  a  result  of  bringing  these drugs under the price control;
- (c) whether many patients/consumers have used the 'Pharma Jan Samadhan' Portal of the NPPA for grievance redressal in the current year ; and
- (d) the total number of cases that the NPPA has processed till date and the total amounts involved in such matters?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI HANSRAJ GANGARAM AHIR)

(a) & (b): Pursuant  to  the  announcement  of  National  Pharmaceutical  Pricing  Policy,  2012, Government has notified Drugs (Prices Control) Order, 2013 (DPCO, 2013) on 15.05.2013. All the  medicines  specified  in  the  National  List  of  Essential  Medicines  2011  (NLEM)  have  been included in the First Schedule of DPCO, 2013 and brought under price control.  Out of total 680 NLEM medicines  (628  net  medicines)  under  scheduled  category  of  DPCO,  2013,  NPPA  has already fixed the ceiling prices in respect of 530 medicines under provisions of the said order. As a result of reduction in the prices of scheduled medicines under price control, the price benefit accrued to the common man is estimated to the extent of to Rs. 2422 crores.

The details of reduction in prices of 530 scheduled formulations effected under DPCO, 2013 as compared to the highest price prevailing prior to the announcement of DPCO, 2013 are given as under:

## Statement showing reduction in price with respect maximum price as on 31.10.2015

| %reduction with respect to Maximum Price   |   No. of drugs |
|--------------------------------------------|----------------|
| 0<= 5%                                     |             80 |
| 5<=10%                                     |             50 |
| 10<=15%                                    |             57 |
| 15<=20%                                    |             43 |
| 20<=25%                                    |             65 |
| 25<=30%                                    |             49 |
| 30<=35%                                    |             26 |
| 35<=40%                                    |             34 |
| Above 40%                                  |            126 |
|                                            |            530 |

This includes 47 formulations for cancer, 20 formulations for AIDS/HIV, 6 formulations for Diabetes and 53 for cardiovascular diseases.

In  addition,  maximum  retail  price  (MRP)  has  been  capped  in  respect  of  106  non scheduled medicines, out of which 84 are used for treatment of cardiovascular diseases and 22 for diabetes, under para 19 of DPCO, 2013. The price benefit accrued to the common man on account of price fixation of these 106 formulations related to anti- diabetic and cardio vascular therapies to the tune of around Rs.350 crore. The reduction in prices effected as compared to the highest price prevailed prior to price capping is as follows:

| %reduction with respect to Highest prevailingMRP (No. of Drugs)   | %reduction with respect to Highest prevailingMRP (No. of Drugs)   | %reduction with respect to Highest prevailingMRP (No. of Drugs)   | %reduction with respect to Highest prevailingMRP (No. of Drugs)   |
|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                   | Diabetic                                                          | Cardiovascular                                                    | Total                                                             |
| 0 <= 5%                                                           | 7                                                                 | 10                                                                | 17                                                                |
| 5 <= 10%                                                          | 2                                                                 | 10                                                                | 12                                                                |
| 10 <= 15%                                                         | 1                                                                 | 11                                                                | 12                                                                |
| 15 <= 20%                                                         | 1                                                                 | 8                                                                 | 9                                                                 |
| 20 <= 25%                                                         | 2                                                                 | 12                                                                | 14                                                                |
| 25 <= 30%                                                         | 2                                                                 | 7                                                                 | 9                                                                 |
| 30 <= 35%                                                         | 2                                                                 | 7                                                                 | 9                                                                 |
| 35 <= 40%                                                         | 1                                                                 | 4                                                                 | 5                                                                 |
| Above 40%                                                         | 4                                                                 | 15                                                                | 19                                                                |
| Total                                                             | 22                                                                | 84                                                                | 106                                                               |

Further, NPPA has also fixed the retail price of 247 'new drugs' under para 5 of DPCO, 2013.

- (c): The web portal Pharma Jan Samadhan (PJS) was launched on 12 th March, 2015 for speedy and effective complaint redressal system regarding (i) availability of medicines, (ii) overpricing of medicines, (iii) sale of 'new drugs' without prior price approval, and (iv) refusal of supply or sale of medicines. The details of complaints/ grievances registered on PJS by patients / consumers and redressal of such complaints since introduction of the PJS are as follows:

| Particulars                |   Nos. |
|----------------------------|--------|
| Overpricing                |     12 |
| Shortage                   |    134 |
| Refusal to sell            |    147 |
| Without price approval     |      2 |
| Total                      |    295 |
| Action taken / Dispose off |    295 |

## (d): The  status  of  overcharging  cases  under  DPCO  1995  /  2013  till  31 st October  2015  and amount involved in this matter is as follows.

## (Amount in Rs. Crores)

| Particulars   |   No. of Cases under DPCO 1995 |   No. of Cases under DPCO 2013 |   Total No. of cases |   Estimated Demand under DPCO 1995 |   Estimated Demand under DPCO 2013 |   Total estimated demand |   Amount realized under DPCO 1995 |   Amount realized under DPCO 2013 |   Total Amount realized |   Amount Out-standing under DPCO 1995 |   Amount Out- standing under DPCO 2013 |   Amount Out- standing |   Amount under litigation |
|---------------|--------------------------------|--------------------------------|----------------------|------------------------------------|------------------------------------|--------------------------|-----------------------------------|-----------------------------------|-------------------------|---------------------------------------|----------------------------------------|------------------------|---------------------------|
| Total Demand  |                           1220 |                            130 |                 1350 |                            4804.42 |                             210.95 |                  5015.37 |                            312.62 |                             66.42 |                  379.04 |                                4491.8 |                                 144.53 |                4636.33 |                   3726.88 |

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