THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS(SHRI SRIKANT KUMAR JENA)
(a) to (e): Some full/partial exemptions/ concessions from custom and central
excise duties on specified drugs and medicines are presently in force. Besides
this, the Government has exempted the payment of central excise duty on goods
including medicines/ drugs manufactured in certain areas for economic upliftment
of the area. These exemptions/concessions are provided to the manufacturers/
importers of pharmaceutical/ medicaments irrespective of their being multinational
or domestic.
Under the provisions of the Drugs (Prices Control) Order, 1995 (DPCO 1995),
the prices of 74 bulk drugs included in its First Schedule and the formulations
containing any of these drugs are controlled. NPPA / Government fixes or revises
prices of the Scheduled drugs / formulations as per the provisions of the DPCO,1995.
No one can sell any Scheduled drug / formulation at a price higher than the price
fixed by NPPA / Government.
In respect of drugs not covered under the DPCO, 1995 i.e. non-Scheduled drugs,
the manufacturers are at liberty to fix the prices by themselves without seeking the
approval of Government / NPPA. Such prices are normally fixed depending on the various
factors like the cost of bulk drugs used in theToTmulation, cost of excipients, cost
of R&D, cost of utilities / packing material, sales promotion costs, trade margins,
quality assurance cost, landed cost of imports etc. 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.
