The Indian federal government has imposed strict penalties on businesses that were discovered to be selling prescription drugs at costs higher than allowed. The government successfully recouped Rs 72.73 crore from these defaulting enterprises for overcharging customers in the fiscal year 2023–2024. In response to a question in the Rajya Sabha on Tuesday, Union Minister of State for Chemicals and Fertilizers Anupriya Patel revealed this information.
The National Pharmaceutical Pricing Authority (NPPA) is tasked with updating the ceiling prices of scheduled medications on a yearly basis in accordance with the Drug Prices Control Order (DPCO), 2013. Every year by April 1st, this revision—which is based on the Wholesale Price Index (WPI) for the previous calendar year—must be finished. The government subsequently notifies the amended pricing, which are then posted on the NPPA website and apply to both scheduled and non-scheduled medications.
Non-scheduled formulations are not included in this list; scheduled formulations are those specified in Schedule-I of the DPCO. The Maximum Retail Price (MRP) for non-scheduled formulations, whether branded or generic, cannot be increased by manufacturers by more than 10% in a 12-month period, according to the DPCO, 2013. However, depending on business factors and market dynamics, manufacturers may decide against raising the pricing of both scheduled and non-scheduled medications.
Drug producers must abide by the terms specified in their manufacturing licenses and follow Good Manufacturing Practices (GMP) according to the Drugs and Cosmetics Act of 1945. The pharmaceutical manufacturing process is covered by these requirements in a number of ways, including production, testing, labeling, packing, distribution, and storage. Pharmacies must adhere to these requirements in order to guarantee their quality and safety. The Act’s provisions and related rules grant the Licensing Authority the authority to take necessary action in the event of non-compliance.
The government’s efforts to control the pharmaceutical business and shield customers from deceptive pricing techniques include measures taken against overpricing. The government’s goal is to ensure that pharmaceutical companies follow high standards of production and ethical procedures, while also maintaining the affordability and accessibility of critical medicines. To this end, the DPCO, 2013 and the Drugs and Cosmetics Act, 1945 are enforced.The government’s determination to enforce price limits and penalize violators is demonstrated by the collection of Rs 72.73 crore from defaulting enterprises. It acts as a warning to other pharmaceutical businesses about the repercussions of overcharging customers and the significance of adhering to price standards. By means of these regulatory measures, the government aims to maintain public health and welfare by guaranteeing that vital medicines continue to be inexpensive and available to all individuals.
SOURCE:
THE PRINT
