Clarification on Medication Pricing: Minimal Impact on Medicine Costs Contrary to Media Claims
Chairman NPPA Kamlesh Kumar Pant
Clarification on Medication Pricing: Minimal Impact on Medicine Costs Contrary to Media Claims
Contrary to recent media reports suggesting a significant increase in medicine prices by up to 12% from April 2024, affecting over 500 medicines, the National Pharmaceutical Pricing Authority (NPPA) has clarified these assertions as false, misleading, and baseless.
As mandated by the Drug Price Control Orders (DPCO) 2013, the NPPA, under the Department of Pharmaceuticals, revises the ceiling prices of scheduled medicines annually based on the Wholesale Price Index (WPI). For the year 2023, the WPI saw a marginal increase of 0.00551%, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
Following a meeting on March 20, 2024, the NPPA approved a WPI increase of just 0.00551% for scheduled medicines, essential drugs listed in Schedule-I of the DPCO 2013. Out of the 923 medicines with effective ceiling prices, 782 will see no change in their ceiling prices, continuing as is until March 31, 2025. A minuscule number of 54 medicines will experience a negligible price adjustment of Rs. 0.01 (one paisa), an increase so minor that manufacturers may choose not to apply it. Therefore, the fiscal year 2024-25 will witness virtually no change in the ceiling price of medicines due to the WPI.
The WPI adjustment represents the maximum permissible increase according to DPCO, 2013. Manufacturers may adjust their Maximum Retail Price (MRP) within the ceiling price constraints, with the MRP (excluding GST) set below the ceiling price. The revised prices, effective from April 1, 2024, are detailed on the NPPA’s website.
For non-scheduled formulations, manufacturers have the freedom to set prices, provided any MRP increase does not exceed 10% within the preceding 12 months, in compliance with DPCO, 2013 guidelines.