No More Steep Price Jumps: Govt Cracks Down On Non-Scheduled Medicines
If your medicine bills have been quietly rising each year, here's some relief—India's drug pricing regulator has now stepped in to keep a close watch on such hikes.
The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilisers, has issued a fresh order to monitor how much companies are increasing the prices of non-scheduled drugs. These are medicines not under direct price control but still widely used.
According to a new office memorandum of NPPA dated July 22, 2025, seen by News18, 'The Government shall monitor the maximum retail prices (MRP) of all the drugs including the non-scheduled formulations and ensure that no manufacturer increases the maximum retail price of a drug more than ten percent of maximum retail price during preceding twelve months…"
In simpler terms, drug companies can't hike prices of such medicines by more than 10% in a year. If they do, they will have to bring the price back down to the allowed level and also return the extra money they charged.
'The manufacturer shall be liable to deposit the overcharged amount along with interest thereon from the date of increase in price in addition to the penalty," the memorandum warned.
The NPPA monitors the prices of all drugs not listed in Schedule I of the Drug Price Control Order (DPCO), 2013. These are called 'non-scheduled formulations" and have been allowed more freedom in pricing—until now.
The Drug Price Control Order (DPCO) is a law ruling prices of medicines that allows authorities to fix the prices of essential medicines and ensure they remain affordable for the public.
To prevent companies from bypassing the rules by launching the same medicine under different brand names at higher prices, the NPPA has directed, 'All manufacturers are hereby directed to align the prices of non-scheduled formulation launched under different brands… so that the difference in MRP is not more than ten percent."
This means whether a medicine is sold under one brand or another, its price should not differ drastically and must stay within a 10% range.
Violations to be taken seriously
Any violation of this rule will invite strict action under the DPCO, 2013, and the Essential Commodities Act, 1955.
The NPPA's move comes at a time when many patients are feeling the pinch of rising medicine costs, especially for chronic conditions like diabetes, hypertension, and mental health.
The memo, signed by NPPA Deputy Director (Enforcement) Manisha Khuntia, has been sent to all drug manufacturers, industry associations, and stakeholders, with a clear message: no more unchecked price hikes.
'Concerned are hereby directed to ensure strict compliance to the provisions of the DPCO, 2013," it stated.
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