Government-controlled medicines, including those for cancer, diabetes, heart-related issues, and antibiotics, are set to become 1.7% more expensive, according to government sources quoted by Business Today.

Reason Behind Price Hike

The All India Organisation of Chemists and Druggists (AIOCD) General Secretary, Rajiv Singhal, stated that the price hike will offer relief to the pharmaceutical industry as raw material costs and other expenses have been steadily increasing.

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When Will the New Prices Reflect?

Singhal mentioned that it may take 2-3 months for the new prices to reflect in the market, as there is usually a stock of approximately 90 days of saleable medicines at any given time.

Regulatory Oversight and Violations

The National Pharmaceutical Pricing Authority (NPPA), responsible for fixing drug prices under the Drug (Prices Control) Order (DPCO), 2013, has detected 307 instances of pricing violations by pharmaceutical companies. All manufacturers are required to sell their products at or below the ceiling price fixed by NPPA, including applicable Goods and Service Tax (GST).

Price Ceiling and Patient Savings

A study by a Parliamentary Standing Committee on Chemicals and Fertilisers indicated that pharma companies often exceed allowable price hikes. However, the Ministry of Chemicals and Fertilisers stated that the average price reduction due to the price ceiling under the National List of Essential Medicines (NLEM), 2022, has resulted in estimated annual savings of around ₹3,788 crore for patients.