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Business Standard
25-07-2025
- Business
- Business Standard
Govt to closely monitor price hikes of drugs outside essential list
The national pharmaceutical pricing regulator will keep a close watch on overcharging by drug companies for medicines outside the purview of the price control list. In an office memorandum dated July 22, the National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilisers, said, 'The Government shall monitor the maximum retail prices (MRP) of all drugs, including non-scheduled formulations, and ensure that no manufacturer increases the maximum retail price of a drug by more than ten percent of the maximum retail price during the preceding twelve months…' Business Standard has reviewed the document. The NPPA will monitor how companies are increasing prices of non-scheduled drugs. These are medicines not under direct price control, for which the NPPA fixes ceiling prices using changes in the wholesale price index, as well as market data (average price to retailers of all brands of the medicine with a market share of 1 percent or more). The prices of scheduled drugs, which are mentioned in the National List of Essential Medicines (NLEM), are fixed every year by the NPPA. In the case of non-scheduled drugs not part of the NLEM, companies are allowed to raise prices by 10 percent annually. The NPPA will now closely monitor whether these price hikes are in line with the limit. If prices are raised beyond the permissible limit, the company will be required to deposit the overcharged amount along with interest, from the date of the price increase, in addition to any penalties, the memorandum warned. Moreover, to prevent companies from 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 formulations launched under different brands… so that the difference in MRP is not more than ten percent.' Any violation of this rule will invite strict action under the DPCO, 2013, and the Essential Commodities Act, 1955. The office memorandum, signed by NPPA Deputy Director (Enforcement) Manisha Khuntia, has been sent to all drug manufacturers, industry associations, and stakeholders. As of September 2024, the NPPA has raised a cumulative demand of Rs 9,980.6 crore from pharmaceutical companies as penalties for overcharging in 2,545 cases. Many of these cases are currently stuck in litigation.
News18
25-07-2025
- Business
- News18
No More Steep Price Jumps: Govt Cracks Down On Non-Scheduled Medicines
NPPA monitors prices of all drugs not listed in Schedule I of the Drug Price Control Order (DPCO), 2013. These 'non-scheduled formulations' had more freedom in pricing—until now 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. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
