The government on Friday said that prices of life-saving drugs in India are regulated under the Drugs (Prices Control) Order (DPCO), 2013 to ensure affordability and accessibility for citizens.
Minister of State for Chemicals and Fertilizers Anupriya Patel shared the details in a written reply in the Lok Sabha.
NPPA Fixes Drug Prices and Monitors Market
The National Pharmaceutical Pricing Authority (NPPA) plays a key role in regulating medicine prices:
- Fixes ceiling prices for drugs listed under Schedule-I of DPCO
- Prices are based on the National List of Essential Medicines (NLEM)
- Determines retail prices for new drugs
- Ensures non-scheduled drugs do not see MRP hikes beyond 10% annually
The NPPA can also intervene in extraordinary situations in public interest and take action against overcharging.
Monitoring Availability, Addressing Shortages
While there is no fixed policy for maintaining buffer stocks of essential medicines, the government continuously monitors availability through:
- State drug controllers
- Public grievance platforms
- Field-level inputs
Corrective steps are taken promptly in case of shortages.
Multiple Schemes Boost Affordable Healthcare Access
The government highlighted several initiatives to improve access to affordable medicines and healthcare:
Jan Aushadhi Kendras
Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):
- 18,646+ Kendras operational
- Medicines available at 50–80% lower prices than branded drugs
Ayushman Bharat Health Coverage
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides:
- Up to ₹5 lakh annual health cover per eligible family
- Covers secondary and tertiary care, including medicines
Free Drugs Under National Health Mission
The National Health Mission (NHM) ensures free essential medicines at public health facilities through its Free Drugs Service Initiative.
AMRIT Pharmacies and Financial Assistance
- AMRIT initiative provides discounted medicines and implants at hospital outlets
- Financial support through:
- Rashtriya Arogya Nidhi
- Health Minister’s Discretionary Grant
These schemes support economically weaker sections, especially for life-threatening diseases.
Ongoing Review of Drug Pricing Policy
The government said that the DPCO 2013 framework is periodically reviewed to strengthen enforcement and ensure that essential medicines remain affordable and accessible to all.
Focus on Affordable and Inclusive Healthcare
The combined efforts of pricing regulation and welfare schemes aim to:
- Reduce out-of-pocket healthcare expenses
- Improve access to life-saving medicines
- Strengthen public health systems
