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): The prices of 74 bulk drugs and the formulations containing any of these
scheduled drugs are controlled under the provisions of the Drugs (Prices Control) Order,
1995 (DPGO.95). National Pharmaceutical Pricing Authority (NPPA) fixes or revises prices
of 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. In respect
of drugs - not covered under the DPCO.95 i.e. non-scheduled drugs, manufacturers are free
to fix the prices by themselves without seeking the approval of Government / NPPA. Except
the 74 scheduled bulk drugs and formulations containing any of these scheduled drugs all
other drugs and formulations are non-scheduled drugs/formulations.
Based on the criteria specified in the Span of Control in para 22.7.2 of the `Modifications
in Drug Policy, 1986,` announced by the Government in September, 1994, 76 bulk drugs,
subsequently reduced to 74, have been included in the First Schedule of the DPCO, 1995
for the purpose of price control. Accordingly, the remaining drugs and formulations called
as non-scheduled drugs/formulations are not covered under the direct price control of the
Government.
(c) to (f) : NPPA regularly examines the movement in prices of non-scheduleci formulations.
The monthly reports of IMS Health and the information furnished by individual manufacturers
are utilized for the purpose of monitoring prices of non-scheduled formulations. Wherever a
price increase beyond 10% per annum 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..
There is no control on the launch price of these medicines.
As per Stock Secondary Audit Reports submitted by IMS Health, the numbers of formulation
packs marketed have been in the range 55,864 to 61,325 during the last four years.
The details of percentage number of packs, whose prices have increased, decreased and
remained stable on the monthly basis in percentage terms as per Retail Audit Reports of
IMS Health for the last five financial years are as follows:
1. Percentage number of packs whose prices increased:
Year April May June July August Sept Oct Nov Dec Jan Feb Mar
2008-09 0.07 0.12 0.30 0.05 0.11 15.89 1.73 2.44 0.10 0.07 0.02 8.74
2009-10 1.99 0.62 4.75 0.01 0.07 3.21 0.14 0.003 2.92 0.03 0.02 2.66
2010-11 0.09 0.02 1.98 0.22 0.09 2.28 0.08 0.03 2.46 0.30 0.01 1.89
2011-12 0.07 0.02 1.49 0.01 0.004 1.77 0.19 0.03 5.00 0.007 0.03 0.10
2. Percentage number of packs whose prices decreased:
Nov
Year April May June July August Sept Oct Nov Dec Jan Feb Mar
2008-09 0.01 0.03 0.08 0.02 0.09 10.85 1.32 2.41 0.29 0.02 0.03 6.67
2009-10 1.32 0.48 5.15 0.02 0.02 2.96 0.02 0.01 1.31 0.02 0.03 0.87
2010-11 0.06 0.01 1.45 0.14 0.03 1.15 0.01 0.02 0.88 0.15 0.01 0.62
2011-12 0.01 0.04 0.89 0.03 0.008 0.67 0.12 0.02 3.74 0.003 0.02 0.03
3. Percentage number of packs whose prices remained stable:
Year April Way June July August Sept Oct Nov Dec Jan Feb Mar
2008-09 99.93 99.85 99.62 99.92 99.80 73.26 96.95 95.15 99.61 99.91 99.95 84.59
2009-10 96.69 98.90 90.10 99.96 99.92 93.83 99.84 99.99 95.76 99.95 99.96 96.47
2010-11 99.85 99.97 96.57 99.65 99.88 96.57 99.91 99.95 96.66 99.55 99.98 97.49
2011-12 99.92 99.94 97.62 99.96 99.99 97.56 99.69 99.95 91.26 99.99 99.95 99.87
Source; IMS-Health
As can be seen from the above tables, in the case of a small number of packs prices have been
increased during the last three years while the prices of most of the packs remained stable. As
stated above, NPPA has fixed prices of non-scheduled formulations considering public interest.
Price changes measured as per the Wholesale Price Index
As per the Wholesale Price Indices released by the Economic Adviser`s office of the Ministry
of Industry, Government of India, following position emerges:
Wholesale Price Index (Base Year 2004-05)
Year All % age Drugs & %age increase Commodities increase Medicines
2008-2009 126.02 8.05 111.41 3.05
2009-2010 130.81 3.80 112.72 1.17
2010-2011 143.32 9.56 115.40 2.38
Source: Office of Economic Adviser, Ministry of Commerce & Industry
It may be observed that the increase in prices of drugs & medicines has been generally lower
than that for All Commodities during the years 2008-09 to 2010-2011A
Based on monitoring of prices of non-scheduled formulations, NPPA has fixed prices in case of
30 formulation packs under para 10(b) and companies have reduced price voluntarily in case of
65 formulations packs. Thus in all, prices of 95 packs of non-scheduled drugs have got reduced
as a result of the intervention of NP
