National Pharmaceutical Pricing Authority

Source: TH

Context: The NPPA recently increased the ceiling prices of eight essential drugs by 50%, citing “extraordinary circumstances” to ensure these medications remain accessible.

Rules and Laws for price revision:

• Para 19 of DPCO 2013: Allows the government to revise drug prices during extraordinary circumstances.

• Essential Commodities Act: Empowers price regulation to ensure availability and affordability.

• Annual Price Revision: Ceiling prices are typically revised based on the previous year’s Wholesale Price Index (WPI).

• Extraordinary Circumstances: Invoked when market conditions make price regulation necessary to maintain drug availability.

About National Pharmaceutical Pricing Authority:

• Origin: NPPA was established on August 29, 1997, to regulate the prices of pharmaceutical drugs and medical devices, implementing the provisions of the Drugs (Prices Control) Order (DPCO).

• Ministry: It operates under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.

• Governing law: NPPA’s authority comes from the DPCO, 2013 and the Essential Commodities Act, ensuring availability and fair pricing of essential drugs.

• Functions:

• Price regulation: Control and regulate the prices of essential drugs and medical devices to ensure they remain affordable. Enforcement: Implement and enforce the provisions of the DPCO regarding the pricing of pharmaceutical products. Monitoring availability: Ensure that essential medicines are available and address shortages when necessary. Data collection: Gather information on drug production, imports, exports, and market shares of pharmaceutical companies. Advisory role: Provide the government with recommendations on drug price revisions and policy changes related to pharmaceuticals. Legal matters: Handle legal cases and disputes arising from pricing and availability issues.

• Price regulation: Control and regulate the prices of essential drugs and medical devices to ensure they remain affordable.

• Enforcement: Implement and enforce the provisions of the DPCO regarding the pricing of pharmaceutical products.

• Monitoring availability: Ensure that essential medicines are available and address shortages when necessary.

• Data collection: Gather information on drug production, imports, exports, and market shares of pharmaceutical companies.

• Advisory role: Provide the government with recommendations on drug price revisions and policy changes related to pharmaceuticals.

• Legal matters: Handle legal cases and disputes arising from pricing and availability issues.

Insta links:

• India-pharmacy-of-world