Lok Sabha Question No. 34 (STARRED), answered on 2016-04-26
Subject: Drug Prices
Ministry: CHEMICALS AND FERTILIZERS
Asked by: KAPIL MORESHWAR PATIL, LAXMAN GILUWA

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

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## LOK SABHA

STARRED QUESTION NO. *34

TO BE ANSWERED ON 26 th  APRIL, 2016

## DRUG PRICES

## * 34. SHRI KAPIL MORESHWAR PATIL:

SHRI LAXMAN GILUWA:

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

- (a) whether some pharmaceutical companies are reportedly charging more price than the rate indicated in the price list/label of containers of medicines, if so, the details thereof and the reasons therefor indicating the number of companies which have been issued notices in this regard;
- (b) the recovery effected if any, from such erring pharmaceutical companies;
- (c) whether any norms/criteria exist with respect to the constituents of drugs manufactured by multinational companies, if so, the details and the reasons therefor;
- (d) whether the performance of domestic pharmaceutical companies remain                    suboptimal due to frequent shortage of essential drugs and if so, the details thereof; and
- (e) whether  the  Government  is  planning  to  set  up  any  regulatory  authority  to  check  such unethical practices in pharmaceutical industry and if so, the details thereof?

## ANSWER

MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI ANANTH KUMAR)

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

## Statement  referred  to  in  reply  to  Lok  Sabha  Starred  Question  No.  *34  for  answer  on 26.04 .2016 regarding Drug  Prices.

- (a) & (b): Yes,  Madam.    Whenever  companies  are  found  overcharging  the  consumer  in respect of prices of medicine, NPPA issues notices to the companies. Demand Notices are issued to pharmaceutical companies for recovery of overcharged amount alongwith interest thereon for violation  under  various  provisions  of  DPCO,  1995  and  DPCO,  2013  read  with  Section  7A  of Essential  Commodities  Act,  1955.  The  details  of  overcharging  cases  of  2015-2016  are  given below.

2015-16

| No. of Companies   | No. of Companies   | No. of Companies   | Demand Notice issued (Rs. in crore)   | Demand Notice issued (Rs. in crore)   | Demand Notice issued (Rs. in crore)   | Recovery effected (Rs. in crore)   | Recovery effected (Rs. in crore)   | Recovery effected (Rs. in crore)   |
|--------------------|--------------------|--------------------|---------------------------------------|---------------------------------------|---------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| DPCO, 1995         | DPCO, 2013         | Total              | DPCO, 1995                            | DPCO, 2013                            | Total                                 | DPCO, 1995                         | DPCO, 2013                         | Total                              |
| 159                | 104                | 263                | 907.84                                | 20.48                                 | 928.32                                | 7.96                               | 4.72                               | 12.68                              |

The  year-wise  list  of  these  overcharging  cases  (updated  upto  31.03.2016)  has  been uploaded on the website of NPPA i.e. www.nppaindia.nic.in.

- (C): No, Madam.
- (d): Domestic  Pharmaceutical  Companies  have  been  showing  continuous  growth  in  their business over the last few years and their performances is not sub-optimal.
- (e): The  Government  has  already  set  up  the  National  Pharmaceutical  Pricing  Authority (NPPA) as a Regulatory Authority in 1997 which has the powers to check overpricing and such unethical practices.

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