Lok Sabha Question No. 1608 (UNSTARRED), answered on 2015-12-08
Subject: Price of Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: BALABHADRA MAJHI, B. S. YEDDYURAPPA, RAJESH RANJAN  (PAPPU  YADAV), CHAND NATH, KANWAR SINGH TANWAR, AJAY NISHAD, MAHENDRA NATH PANDEY, NEELAM SONKER, SHARAD TRIPATHI, ANOOP MISHRA, K. GOPAL, KAMLA DEVI PATLE, ANIRUDHAN SAMPATH

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF PHARMACEUTICALS

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## LOK SABHA

UNSTARRED QUESTION NO. 1608

TO BE ANSWERED ON 8 th  DECEMBER,   2015

## Prices of Drugs

1608.   SHRI BALABHADRA MAJHI:

SHRI B.S. YEDIYURAPPA:

SHRI RAJESH RANJAN:

SHRI CHAND NATH:

SHRI KANWAR SINGH TANWAR:

SHRI AJAY NISHAD:

DR. MAHENDRA NATH PANDEY:

SHRIMATI NEELAM SONKER:

SHRI SHARAD TRIPATHI:

SHRI ANOOP MISHRA:

DR. K. GOPAL:

SHRIMATI KAMLA DEVI PAATLE:

DR. A. SAMPATH:

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

- (a) whether prices of drugs for combating various diseases have increased manifold in last three years;
- (b) the  role  of  Government  and  pharmaceutical  companies  including  multinational drug companies in fixation of prices of drugs in the country;
- (c) whether several State Governments have also forwarded their suggestion in fixing prices of drugs including charging of local taxes etc.  to the Union Government;
- (d) if so, the final decision of Union Government thereto;
- (e) whether the Government has taken steps to ensure that the consumers gets drugs at affordable rates in various parts of the country; and
- (f) if  so,  the  details  thereof  and  success  achieved  so  far  by  the  Government  in ensuring the prices are kept within the reach of common man in the country?

## ANSWER

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

(a): No, Madam. Under Drugs (Prices Control) Order, 2013 (DPCO, 2013) notified on 15 th May, 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 fixed the ceiling prices in respect of 530 medicines (including 47 medicines for cancer and 22 for HIV / AIDS) based on market price data under provisions of the said order. In addition, maximum retail price (MRP) has  been  capped  under  Para  19  of  DPCO,  2013,  in  respect  of  106  non  scheduled medicines, out of which 84 are used for treatment of cardiovascular diseases and 22 for diabetes. NPPA has also fixed the retail price of 247 'new drugs' (which fall within the purview of Para 2(u) of DPCO.2013) under para 5 of DPCO, 2013. Upward revision in the  prices  of  scheduled  formulations  is  permissible  to  the  extent  of  increase  in  the Wholesale  Price  Index  (WPI)  for  the  particular  year.  In  respect  of  non-scheduled formulations,  price increase is permissible upto maximum limit of 10% of the price of the  preceding  12  months.  Further,  under  Para  13(2)  of  DPCO,  2013,  all  the  existing manufacturers  of  scheduled  formulations,  selling  the  branded  or  generic  or  both  the versions of scheduled formulations at a price lower than the ceiling price (plus local taxes as  applicable)  so  fixed  and  notified  by  the  Government  shall  maintain  their  existing maximum retail price.

(b),   (c) & (d) :   DPCO, 2013 provides for fixation of ceiling prices of medicines, as contained in Schedule-I of the said order on the basis of 'market price data'.  National Pharmaceutical Pricing Policy (NPPP, 2012) which formed the basis of DPCO, 2013 was issued after considering the representations from State Governments, Civil Society and other stakeholders.

(e)  &  (f):            NPPA  regularly  monitors  the  prices  of  scheduled  and  non  scheduled formulations under provisions of DPCO, 2013 for ensuring that consumers get drugs at affordable  rates  in  various  parts  of  the  country.    Where  any  manufacturer  sells  a scheduled / non-scheduled formulation at a price higher than the price permissible under the said order, such manufacturer is liable to deposit the overcharged amount along with interest thereon from the date of such overcharging. The year-wise list of overcharging cases  (updated  upto  30.11.2015)  has  been  uploaded  on  the  website  of  NPPA  i.e. www.nppaindia.nic.in.  Besides,  the  Government  has  opened  Jan  Aushadhi  Stores countrywide to provide quality medicines at affordable prices to the common masses.

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