National Pharmaceutical Pricing Authority (NPPA)

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Drug price regulator National Pharmaceutical Pricing Authority (NPPA) recently fixed the retail prices of 44 new drug formulations.

About National Pharmaceutical Pricing Authority (NPPA)


  • It is a government regulatory agency established with the aim of controlling and regulating the prices of pharmaceutical drugs and medical devices in the country to ensure their availability at affordable rates.
  • It was constituted vide Government of India Resolution dated 29th August 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers. 
  • Functions
    • To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
    • To deal with all legal matters arising out of the decisions of the Authority.
    • To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
    • To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations.
    • To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.
    • To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government.
    • To render advice to the Central Government on changes/ revisions in the drug policy.
    • To render assistance to the Central Government in the parliamentary matters relating to drug pricing.


What are Bulk Drugs?

  • A bulk drug, also called an active pharmaceutical ingredient (API), is the key ingredient of a drug or medicine, which lends it the desired therapeutic effect or produces the intended pharmacological activity.
  • For example, paracetamol is a bulk drug, which acts against pain.


Q1) What is the Drugs (Prices Control) Order?

The Drugs (Prices Control) Order (DPCO) is a regulatory framework established by the Government of India to control and regulate the prices of pharmaceutical drugs in the country. The DPCO is aimed at ensuring that essential and life-saving medicines are available to the general population at reasonable and affordable prices.

Source: Drug pricing regulator NPPA fixes retail rates of 44 formulations; fever, heart medicines included