Myth vs. Facts: NPPA Debunks Misleading Reports on Medicine Price Hikes

Kumar Rakesh
New Delhi, 4th April. In response to recent media reports suggesting a significant surge in medicine prices, the National Pharmaceutical Pricing Authority (NPPA) has clarified the facts, dismissing such claims as false and misleading.

Here’s a breakdown of the truth behind the headlines:

The Allegation: Several media outlets have alleged a substantial increase in medicine prices, with some claiming hikes of up to 12% affecting over 500 medications.

The Reality: Contrary to these assertions, the NPPA, in accordance with the Drug Price Control Orders (DPCO) 2013, annually revises the ceiling prices of scheduled medicines based on the Wholesale Price Index (WPI). The recent data indicates a minimal WPI increase of (+) 0.00551% for the calendar year 2023, reflecting negligible inflation in medicine costs.

Impact on Medicine Prices: Out of the 923 medicines currently under price regulation, the overwhelming majority—782 in total—will experience no change in their existing ceiling prices until March 31, 2025. Only 54 medicines, with prices ranging from Rs. 90 to Rs. 261, will see a marginal increase of Rs. 0.01 (one paisa). Importantly, this adjustment falls within the maximum permissible increase allowed by the DPCO 2013.

Manufacturer Discretion: While the DPCO mandates the maximum permissible increase, it also grants discretion to manufacturers regarding the adoption of these adjustments. Manufacturers may or may not choose to apply the minuscule increase to their products, considering various market factors.

Consumer Impact: It’s essential to note that the revised prices, effective from April 1, 2024, primarily affect the Maximum Retail Price (MRP) ceiling. Consumers are advised to refer to the NPPA’s official website for detailed information on revised prices and ensure compliance with regulated rates.

Non-Scheduled Formulations: For non-scheduled formulations, where manufacturers have pricing autonomy, any MRP increase is capped at 10% within the preceding 12 months under DPCO 2013 regulations.

Conclusion: In light of these clarifications, it’s evident that claims of widespread medicine price hikes are unsubstantiated. The NPPA remains committed to transparent pricing mechanisms, ensuring affordability and accessibility of essential medications for all citizens.