DPCO and NPPP
UNDER the provisions of the Drugs (Prices & Control) Order, 1995 (DPCO, 1995), the prices of 74 bulk drugs listed in its First Schedule and the formulations containing any of these scheduled drugs are controlled. National Pharmaceutical Pricing Authority (NPPA) fixes or revises prices of scheduled drugs / formulations as per the provisions of the DPCO, 1995. In respect of drugs - not covered under the DPCO, 1995 i.e. non-scheduled drugs, manufacturers fix the prices by themselves without seeking the approval of Government / NPPA. However, the trend in prices of non-scheduled drugs is monitored and suitable action is taken by NPPA where price increase is more than 10% in a period of one year on moving basis.
The National Pharmaceutical Pricing Policy-2012 (NPPP-2012) has been notified on 07.12.2012. As per the provisions of NPPP-2012, all the manufacturers/importers manufacturing/importing the medicines as specified under National List of Essential Medicines, 2011 (NLEM-2011) shall be under the purview of price control. The objective of NPPP-2012 is to put in place a regulatory framework for pricing of drugs so as to ensure availability of required medicines - “essential medicines” - at reasonable prices even while providing sufficient opportunity for innovation and competition to support the growth of industry, thereby meeting the goals of employment and shared economic well-being for all.
This information was given by the Minister of State (Independent Charge) for Chemicals and Fertilisers, Srikant Kumar Jena in a written reply in the Lok Sabha yesterday.