Why Government Approved 50% Increase In Prices Of Commonly Used Drugs? (image-pixabay)
The government on October 14 had increased the prices of commonly used medicines. The National Pharmaceutical Pricing Authority of India (NPPA) had increased the prices by 50%. The medicines that were included in the category comprised medication for common diseases including asthma, tuberculosis, bipolar disorder, and glaucoma.
The government had cited “extraordinary circumstances” and “public interest” as the reason for the order. The NPPA department comes under the Department of Pharmaceuticals under the Department of Chemicals and Fertilizers. The NPPA’s mandate is to ensure that essential drugs are available on the market at an affordable price and without jeopardizing access. However, the NPPA has now stated that they have received many applications from manufacturers for upward revision of the process, citing the increase in the cost of active pharmaceutical ingredients; increase in the cost of production and a change in the exchange rate, making production and marketing of drugs unviable.
Some of the companies have also applied for discontinuation of some formulations.
The NPPA which was constituted in 1997, has the capacity to regulate the ceiling prices of drugs and has the power to fix costs under the Drug Price Control Order which was issued by the government under the Essential Commodities Act.
The central government invoking the extraordinary power under DPCO, took the decision to hike the cost of drugs in a meeting on October 8. The NPPA had approved the increase in ceiling prices of eleven scheduled formulations of eight drugs by 50% of their current ceiling prices.
Such extraordinary powers were invoked earlier in 2019 and 2021 as well. Section 19 of the DPCO allows the government to revise the ceiling cost.
The drugs of which now the prices have been increased includes atropine injection 06. mg/ml; streptomycin powder for injection 750mg and 1000mg; salbutamol tablet 2mg and 4 mg and respirator solution 5mg/ml; pilocarpine 2% drops; cefadroxil tablet 500 m, desferrioxamine 500 mg for injection; and lithium tablets 300 mg.
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Usually, the NPPA increases the ceiling prices of drugs based on the Wholesale Price Index of the proceeding year in every financial year starting April 1. And the pricing is strictly controlled by the central government. Actions are taken against companies who are found selling the drugs at higher prices.
