Under the provisions of the Drugs (Prices Control) Order, 1995 (DPCO, 1995) the prices of 74 scheduled bulk drugs and the formulations containing any of these scheduled drugs are controlled. In respect of those scheduled medicines, which are part of National List of Essential Medicines-2011 (NLEM), National Pharmaceutical Pricing Authority (NPPA) fixes the prices as per the provisions of DPCO,1995. No one is authorized to sell any scheduled drug / formulation at a price higher than the price fixed by NPPA.
In respect of non-scheduled medicines, which are part of NLEM, manufacturers fix the prices without seeking approval of the Government / NPPA. However, as a part of price-monitoring activity, NPPA regularly examines the movement in prices of non-scheduled formulations. Wherever a price increase beyond 10% per annum on moving basis is noticed, subject to prescribed conditions, action is initiated under paragraph 10(b) of the DPCO, 1995 for fixing the price of the formulation in public interest.
The National Pharmaceutical Pricing Policy, 2012 (NPPP-2012) has been notified on 07.12.2012. As per provisions of NPPP-2012 the medicines of strengths and dosage forms as specified in the National List of Essential Medicines-2011 (NLEM, 2011) shall be under price control.
*****
