NPPA monitors the prices of scheduled as well as non-scheduled medicines under DPCO, 2013

According to the statement published by PIB, The National Pharmaceutical Pricing Authority (NPPA) is actively overseeing the pricing of both scheduled and non-scheduled medicines under the Drugs (Prices Control) Order, 2013 (DPCO, 2013). The NPPA ensures that companies adhere to permissible pricing limits, taking action against those who violate these rules.

Under DPCO, 2013, formulations are categorised into scheduled and non-scheduled drugs. Scheduled formulations, listed in Schedule-I of the DPCO, have their ceiling prices revised annually based on the Wholesale Price Index (WPI) for the preceding calendar year. These revised prices are notified by the government on April 1 each year and are accessible on the NPPA’s website, nppaindia.nic.in.

For non-scheduled formulations, the DPCO restricts manufacturers from increasing the Maximum Retail Price (MRP) by more than 10 per cent over the preceding 12 months. Manufacturers may choose to utilise these maximum permissible price increases depending on market conditions and commercial considerations.

Additionally, drug manufacturers are required to comply with the Drugs and Cosmetics Act, 1945, and associated rules, including adherence to Good Manufacturing Practices (GMP). The NPPA monitors compliance and takes enforcement actions against companies that sell medicines at prices exceeding the permissible limits. During the financial year 2023-24, the NPPA recovered Rs. 72.73 crore from defaulting companies for overcharging.

This information was provided by the Union Minister of State for Chemicals and Fertilisers, Anupriya Patel, in the Rajya Sabha.