Government has recovered Rs 72.73 cr from drug manufacturers for selling drugs at higher prices

New Delhi [India] July 30 (ANI): The central government has taken action against companies found selling formulations at prices higher than the permissible price. In the year 2023-24, it has recovered Rs 72.73 crore from the defaulting companies who have overcharged the consumers, Union Minister of State for Chemicals and Fertilizers Anupriya Patel informed Rajya Sabha on Tuesday in reply to a question.
As per the provisions of the Drug Prices Control (DPCO), 2013, the ceiling prices of scheduled medicines are revised annually on the basis of the Wholesale Price Index (WPI) for the preceding calendar year by National Pharmaceutical Pricing Authority (NPPA), on or before 1st April of every year. The government notifies the revised prices on April 1st every year.
The details of the price fixed by NPPA are made available at NPPA's website. Both schedule and non-schedule drugs are covered under DPCO, 2013.
In case of non-scheduled formulation (branded or generic), as per DPCO, 2013, no manufacturer can increase Maximum Retail Price (MRP) by more than 10 per cent of MRP during the preceding 12 months.
However, the manufacturer may choose not to increase the prices for scheduled and non-scheduled drugs based on commercial considerations and market dynamics.
Formulations listed in Schedule-I of the DPCO are defined as scheduled formulations, while formulations not included in Schedule -I are defined as non-scheduled formulations.
Under the Drugs and Cosmetics Act, 1945, manufacturers of drugs are required to comply with the conditions of the manufacturing license and the requirements of Good Manufacturing Practices.
The manufacturing, testing, labelling, packaging, storage, and distribution are required to be carried out in compliance with the conditions of the license including the Good Manufacturing Practices prescribed under Drugs Rules. In case of violation, the Licensing Authority is empowered to take action as per the said Act and Rules.
NPPA monitors the prices of scheduled as well as non-scheduled medicines. (ANI)