(a) whether there is a big difference between the factory price and the
market price of the medicines in the country;
(b) if so, the details thereof alongwith reasons therefor; and
(c) the steps being taken up the Government in this regard?
(a) whether there is a big difference between the factory price and the
market price of the medicines in the country;
(b) if so, the details thereof alongwith reasons therefor; and
(c) the steps being taken up the Government in this regard?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS &
PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS
AND FERTILIZERS(SHRI SRIKANT KUMAR JENA)
(a)to(c): National Pharmaceutical Pricing Authority (NPPA) is an attached
office under the Government, fixes the prices of scheduled medicines
containing any of 74 bulk drugs listed in the Drugs (Prices Control) Order,
1995 (DPCO, 95). As per the provisions of the DPCO, 95, NPPA allows the MAPE
(Maximum Allowable Post Manufacturing Expenses) upto 100% on the ex-factory
cost of indigenously produced scheduled medicines and margin upto 50% is
allowed in case of scheduled medicines imported in the finished form. No one
can sell any scheduled drug / formulation at a price higher than the price
fixed by NPPA / Government. Therefore, there cannot be price variation in
cases of scheduled drugs.
In respect of drugs not covered under the DPCO, 95 i.e. non-scheduled drugs,
manufacturers are at liberty to fix the prices by themselves without seeking
the approval of Government / NPPA. NPPA has not carried out any specific study
regarding difference between the ex-factory price and market price of non-
scheduled formulations in the country. However, as a part of price monitoring
activity, NPPA regularly examines the movement in prices of non-scheduled
formulations. Wherever a price increase beyond 10% per annum (20% before
01.04.2007) is noticed, the manufacturer is asked to bring down the price
voluntarily failing which, subject to prescribed conditions action is
initiated under paragraph 10(b) of the DPCO, 1995 for fixing the price of
the formulation in public interest. This is an ongoing process.
Based on monitoring of prices of non-scheduled formulation, NPPA has fixed
prices in case of 30 formulation packs under Para 10(b) and companies have
reduced price voluntarily in case of 65 formulation packs. Thus in all,
prices of 95 packs of non-scheduled drugs have got reduced as a result of
the intervention of NPPA.