The Centre has taken stringent action against companies selling drugs at prices higher than permissible. In the fiscal year 2023-24, the government has recovered Rs 72.73 crore from these defaulting companies, Union Minister of State for Chemicals and Fertilizers Anupriya Patel informed the Rajya Sabha on Tuesday.
Under the Drug Prices Control Order (DPCO), 2013, the ceiling prices of scheduled medicines are revised annually based on the Wholesale Price Index (WPI) for the preceding calendar year. The National Pharmaceutical Pricing Authority (NPPA) revises and notifies these prices by April 1st each year. The details of these price revisions are available on the NPPA’s website. Both scheduled and non-scheduled drugs fall under the purview of DPCO, 2013.
For non-scheduled formulations, whether branded or generic, the DPCO, 2013 stipulates that no manufacturer can increase the Maximum Retail Price (MRP) by more than 10 per cent over the preceding 12 months. Manufacturers, however, have the discretion not to increase prices based on commercial considerations and market dynamics.
Scheduled formulations are listed in Schedule-I of the DPCO, while non-scheduled formulations are those not included in Schedule-I.
Under the Drugs and Cosmetics Act, 1945, drug manufacturers must comply with the conditions of their manufacturing license and adhere to Good Manufacturing Practices (GMP). This includes stringent regulations on manufacturing, testing, labelling, packaging, storage, and distribution. The Licensing Authority is empowered to take action against violations as per the Act and Rules.
The NPPA actively monitors the prices of both scheduled and non-scheduled medicines to ensure compliance with these regulations.
