(a) whether the pharma industry hasbeen increasing prices of medicines upto2% annually in contravention of thegovernment policy;
(b) if so, the details thereof and thereaction of the Government thereto;
(c) whether the Government hasdelegated powers regarding revision of thePrices of drugs to National PharmaceuticalPricing Authority (NPPA); and
(d) if so, the details thereof and the stepstaken by the Government to control theprices of drugs?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI NIHAL CHAND)
(a) & (b): As per provisions of para 16(2)of Drugs (Prices Control) Order, 2013 (DPCO, 2013) the manufacturer may increase the maximum retail price (MRP) of scheduled formulations once in a year, in the month of April, on the basis of the wholesale Price Index (WPI) with respect to previous calendar year and no prior approval of the Government in this regard shall be required. As regards, non-scheduled formulations, no manufacturer is authorized to increase the maximum retail price of a drug more than ten percent of maximum retail price during preceding twelve months and where the increase is beyond ten percent of maximum retail price, it shall reduce the same to the level of ten percent of maximum retail price for next twelve months. NPPA regularly monitors the prices of both scheduled and non-scheduled formulations as per provisions laid down in the DPCO, 2013
(c) & (d): Yes, Sir. NPPA, an independent body of experts under this Department has been delegated the power under DPCO, 2013 to fix the ceiling price or retail price of any drug. As per delegated powers, NPPAhas notified the ceiling prices in respect of 440 medicines upto 30thJune, 2014 out of total 680 NLEM medicines under scheduled category of DPCO, 2013. Further, NPPA has also fixed the prices of anti-diabetic and cardiovascular in respect of 108 non-scheduled formulations.