It's illegal to sell essential medicines above fixed prices

Created On: 25 July 2015 5:19 PM IST

Its illegal to sell essential medicines above fixed prices

As per the provisions of Drugs Price Control Order (DPCO, 2013) the Government/NPPA fixes the ceiling prices of essential medicines contained in Schedule-I. While fixing the ceiling price 16% margin is allowed to the retailers. For non-scheduled formulations there is no control over the launch price. In respect of medicines not under price control, manufacturers are allowed to increase maximum retail price (MRP) by 10% annually.

DPCO, 2013 has been issued by the Government on 15.05.2013 in pursuance to National Pharmaceutical Pricing Policy, 2012. The key principles for regulation of prices are (i) essentiality of drugs, (ii) control of formulation prices only, and (iii) market based pricing. Hence, there is no specific mechanism available in the DPCO, 2013 to check the difference between the actual cost of production and the retail price of medicines.

As the price fixation is market price based, prices of essential medicines included in the Schedule-I of DPCO, 2013 are fixed/notified in compliance with the provisions contained in the said order to ensure that these medicines are available at reasonable price. No person is authorized to sell any scheduled formulation (medicine) to a consumer at a price exceeding the price notified by the NPPA under DPCO, 2013.

This information was given by the Minister of State for Chemicals & Fertilizers Shri Hansraj Gangaram Ahir in reply to an Unstarred Question in the Rajya Sabha today.