Trade Margin for Non-Branded Medicines

As per Drugs (Prices Control) Order, 1995 (DPCO, 1995), prices of scheduled medicines are fixed by National Pharmaceutical Pricing Authority (NPPA) taking into account a margin of 16% to the retailer. No one can sell the scheduled medicine at a price higher than the price fixed by NPPA/Government.

In respect of drugs not covered under the Drugs DPCO, 1995, i.e. non-scheduled drugs, manufacturers fix the prices themselves without seeking the approval of Government/NPPA. Such prices are normally fixed depending on various factors like the cost of bulk drugs used in the formulation, cost of excipients, cost of R&D, cost of utilities/packing material, trade margins, quality assurance cost, landed cost of imports etc.

The DPCO, 1995 does not distinguish between branded and non-branded medicines.
This information was given in a written reply in Lok Sabha today by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena.

…..

DNM/AS