(a) whether there is a huge difference between the retail price and manufacturing
cost of medicines due to which these are out of reach of the common man;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps being taken by the Government in this regard?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME
IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SHRI SRIKANT KUMAR JENA)
(a) & (b) Under the provisions of the Drugs (Prices & Control) Order, 1995 (DPCO, 1995)
the prices of 74 bulk drugs listed in its First Schedule and the formulations containing
any of these scheduled drugs are controlled. National Pharmaceutical Pricing Authority
(NPPA) fixes or revises prices of scheduled drugs/formulations as per the provisions of
the DPCO, 1995. Consequently, no one is allowed to sell any scheduled drug / formulation
at a price higher than the price fixed by NPPA.
However, in respect of drugs - not covered under the DPCO, 1995 i.e. non-scheduled drugs,
manufacturers fix the prices by themselves without seeking the approval of Government /
NPPA. There are wide variations in the prices of non-scheduled drugs of different brands
based on same chemical combinations as there is no control on the launch price of these
medicines. However, the trend in prices of non-scheduled drugs is monitored and suitable
action is taken by NPPA where price increase is more than 10% in a period of one year on
moving basis.
(c) National Pharmaceutical Pricing Policy, 2012 (NPPP-2012) notified by the Government on
7th December, 2012 has the provision of bringing the medicines listed under National List
of Essential Medicines-2011 (NLEM-2011) under price control.