Lok Sabha Question No. 340 (STARRED), answered on 2016-08-09
Subject: Price Monitoring by NPPA
Ministry: CHEMICALS AND FERTILIZERS
Asked by: AJAY NISHAD

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

*******

LOK SABHA

STARRED QUESTION NO. *340

TO BE ANSWERED ON 09 th  August, 2016

Price Monitoring by NPPA

*340.  SHRI AJAY NISHAD:

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

- (a) whether the National Pharmaceutical Pricing Authority (NPPA) has any proposal to  strengthen  its  enforcement  activities  and  strictly  monitor  the  prices  of  drugs across the country and if so, the details thereof;
- (b) whether  NPPA  has  sought  permission  from  NITI  Aayog  to  set  up  State  level monitoring cells and if so, the details thereof and the response received thereon;
- (c) whether cases of overpricing of drugs in duty free zones have been detected/reported and if so, the details thereof; and
- (d) the steps taken by the Government to check the overpricing of drugs?

## ANSWER

## MINISTER   IN   THE   MINISTRY   OF   CHEMICALS   &   FERTILIZERS AND PARLIAMENTARY AFFAIRS (SHRI ANANTH KUMAR)

- (a) to (d): A statement is laid on the Table of the House.

## Statement  referred  to  in  reply  to  Lok  Sabha  Starred  Question  No.  *340  for  answer  on 09/08/2016 regarding Price Monitoring by NPPA.

(a) & (b): In order to strengthen the enforcement activities and strictly monitor the prices of drugs across the country, the National Pharmaceutical Pricing Authority (NPPA), launched

(i) Integrated Pharmaceutical Database Management System (IPDMS) on 25 th June, 2015 in collaboration with the National Informatics Centre (NIC). IPDMS facilitates on-line submission of mandatory returns under the DPCO, 2013 which in turn helps in monitoring and enforcement of prices of drugs.

(ii) Pharma  Jan  Samadhan  (PJS)  on  12 th March,  2015.  PJS  is  a  web  enabled  system developed by the NPPA with the assistance of National Informatics Centre (NIC). PJS serves as a robust e-governance tool for protection of consumer interest through effective implementation of  the  Drugs  (Prices  Control)  Order,  2013.  PJS  is  a  speedy  and  effective  complaint  redressal system with respect to availability of medicines, overpricing of medicines, sale of 'new drugs' without  prior  price  approval  and  refusal  of  supply  or  sale  of  medicines.  Any  individual  or consumer organization  or  stockist  /  distributor  /  dealer  /  retailer  or  State  Drug  Controller  can lodge the on-line complaint to NPPA through PJS. Action on the complaint received through PJS with complete information is initiated within 48 hours by the NPPA.

(iii) A central sector scheme titled 'Scheme of Consumer Awareness & Publicity and Price Monitoring' is currently under implementation. Under the scheme, it is proposed to set up Price Monitoring  and  Resource  Units  (PMRUs)  in  States  under  the  State  Drugs  Controller.  The scheme  initially  at  the  pilot  stage  will  be  implemented  in  the  states  of  Maharashtra,  Gujarat, Orissa,  Haryana,  Kerala,  Assam  and  Manipur.    Since  NPPA  does  not  have  field  units,  the PMRUs are expected to support NPPA in its monitoring and enforcement activities.

NPPA has not sought any permission from NITI Aayog in this regard. The 'Scheme of Consumer  Awareness  &  Publicity  and  Price  Monitoring'  has  been  approved  by  Standing Finance Committee (SFC) of the Department of Pharmaceuticals in July, 2015.

(c): Data relating to overpricing of drugs in duty free zones is not specifically maintained by NPPA. NPPA fixes the ceiling prices of medicines under Schedule-I of DPCO, 2013 irrespective of the fact whether the manufacturing unit is in duty free zone or not.

(d): NPPA monitors whether scheduled formulations are being sold at ceiling prices or not. In case of non-scheduled formulations, NPPA monitors that the price of the formulation does not exceed  10%  of  the  price  in  the  preceding  12  months.  To  check  the  overpricing  of  drugs,  the NPPA monitors the prices of medicines. Further, on a regular basis samples are purchased from the  market  and  data  received  from  State  Drugs  Controllers,  complaints  from  public  etc.  are examined.  The  data  uploaded  by  pharmaceutical  companies  on  Integrated  Pharmaceutical Database  Management  System  (IPDMS)  is  also  scrutinized  to  detect  cases  of  overpricing  of medicines. On detection of overcharging, NPPA issues show-cause notices and demand notices to the concerned companies for recovery of overcharged amount alongwith interest thereon @ 15% per annum from the date of default.

*******