National Pharmaceutical Pricing Authority

31-07-2024

06:30 PM

timer
1 min read
National Pharmaceutical Pricing Authority Blog Image

Overview:

Union Minister of State for Chemicals and Fertilizers informed the Rajya Sabha that many pharmaceutical companies received notices from the National Pharmaceutical Pricing Authority (NPPA) and govt recovered Rs 73 crore in violation of the Drug Price Control Order.

About National Pharmaceutical Pricing Authority:

  • It was set up in 1997 to fix and revise the prices of controlled bulk drugs, and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995.
  • It is an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.
  • 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 render assistance to the Central Government in the parliamentary matters relating to the drugs

Nodal Ministry: It is an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals and Fertilizers.


Q1: What is the "Drugs (Prices Control) Order (DPCO)?

The Drugs Prices Control Order, 1995 is an order issued by the Government of India under Sec. 3 of Essential Commodities Act, 1955 to regulate the prices of drugs. The Order interalia provides the list of price controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions etc.

Source: Govt claims recovery of Rs 73 crore for drug price violations in FY24—what about the rest?