Key Points
Drug price ceiling saved patients nearly Rs 4,000 crore annually
NPPA regulates medicine prices under DPCO, 2013
Jan Aushadhi Kendras offer 50-80% cheaper medicines
Government targets expanding affordable medicine basket
Union Minister of State for Chemicals and Fertilisers, Anupriya Patel said in a written reply in the Rajya Sabha that the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals (DoP) fixes ceiling prices of these scheduled medicines in accordance with the provisions of DPCO, 2013.
All manufacturers and marketers of scheduled medicines are required to sell their products within the ceiling price (plus applicable Goods and Service Tax) fixed by the NPPA.
Further, NPPA fixes the retail price of new drugs, as defined in DPCO, 2013.
In respect of non-scheduled formulations, manufacturers are required to not increase the maximum retail price of the drugs launched by them by more than 10 per cent during the preceding 12 months.
As on March 12, ceiling prices of 928 scheduled formulations and retail prices of over 3,200 new drugs stood fixed by NPPA.
The average price reduction due to fixation or refixation of prices under NLEM, 2022 was about 17 per cent, Patel informed.
Besides price regulation, the government has also enabled access to affordable essential medicines through Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), under which quality medicines are offered through Jan Aushadhi Kendras (JAKs) at rates that are typically 50 per cent to 80 per cent lower than the prices of branded medicines available in the market.
Under the Affordable Medicines and Reliable Implants for Treatment (AMRIT) initiative, medicines, implants, surgical disposables and other consumables are provided at significant discounts of up to 50 per cent of market rates through AMRIT Pharmacy stores, informed the minister.
Currently, 2,047 medicines and 300 surgicals, medical consumables and devices are under the PMBJP scheme product basket, covering all major therapeutic groups, such as cardiovascular, anti-cancers, anti-diabetic, anti-infectives, anti-allergic and gastro-intestinal medicines and nutraceuticals etc.
"The Department of Pharmaceuticals has set the target to increase the product basket to 2,100 medicines and 310 surgicals, medical consumables and devices by 31.3.2025," said the minister.
