Government brings 1,421 drugs under Price Control Order
25 Apr 2008
The government has brought 74 bulk drugs under the Drugs (Prices Control) Order, 1995 and the prices of 1,421 formulations based on these are being fixed or revised by the National Pharmaceutical Pricing Authority (NPPA).
The prices will be applicable to manufacturers concerned throughout the country unless otherwise exempted under the provisions of Drug Prices Control Order, the ministry of consumer affairs said in a release.
Prices of non-scheduled formulations are fixed by the manufacturers themselves keeping in view the various factors like cost of production, marketing/selling expenses, product quality etc. The government takes corrective measures where the public interest is found to be adversely affected, the release added.
The government has constituted a group of ministers (GoM) to examine the draft national pharmaceuticals policy, 2006 which, inter alia, includes the issue of price control mechanism on medicines, the release noted.
The policy draft was submitted before the cabinet for its approval which considered it at its meeting held on 11 January 2007 and decided that the matter may be considered by a group of ministers. The GoM has since been constituted and has held three meetings so far on 10 April 2007, 12 September 2007 and 30 January 2008. The group of ministers is yet to make its recommendations to the cabinet, the release added.
Price increases and decreases of Scheduled formulations for last three years is given at Annexure 1.
| Period | No. of cases approved | Price Reduced | Price Increased | Price fixed for the First Time* | No Change in Price | Total |
| 2005-06 | 1018 | 323 | 94 | 480 | 41 | 1018 |
| 2006-07 | 1020 | 302 | 113 | 522 | 27 | 1020 |
| 2007-08 | 2012 | 396 | 65 | 1421 | 83 | 2012 |
| Grand Total | 4050 | 1021 | 272 | 2423 | 151 | 4050 |
The common reasons for rise in the prices of medicines, normally stated by the industry and trade are:
(a) rise in the price of raw materials which inter alia includes increase in the raw material cost, packing material cost, conversion cost and packing charges cost
(b) rise in the cost of production/import
(c) rise in the cost of transport, freight rates
(d) rise in the cost of utilities like fuel, power, diesel etc
(e) for imported medicines, rse in the c.i.f price and depreciation of the rupee; and
(f) changes in taxes and duties.
The Drugs (Prices Control) Order, 1995 does not distinguish between life saving and other drugs. There are no specific norms or guidelines to determine as to which drug can be classified as life saving drugs. Every drug in general is considered useful in saving and prolong life, the release said.