Source: TH
Context: The NPPA recently increased the ceiling prices of eight essential drugs by 50%, citing “extraordinary circumstances” to ensure these medications remain accessible.
Rules and Laws for price revision:
- Para 19 of DPCO 2013: Allows the government to revise drug prices during extraordinary circumstances.
- Essential Commodities Act: Empowers price regulation to ensure availability and affordability.
- Annual Price Revision: Ceiling prices are typically revised based on the previous year’s Wholesale Price Index (WPI).
- Extraordinary Circumstances: Invoked when market conditions make price regulation necessary to maintain drug availability.
About National Pharmaceutical Pricing Authority:
- Origin: NPPA was established on August 29, 1997, to regulate the prices of pharmaceutical drugs and medical devices, implementing the provisions of the Drugs (Prices Control) Order (DPCO).
- Ministry: It operates under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
- Governing law: NPPA’s authority comes from the DPCO, 2013 and the Essential Commodities Act, ensuring availability and fair pricing of essential drugs.
- Functions:
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- Price regulation: Control and regulate the prices of essential drugs and medical devices to ensure they remain affordable.
- Enforcement: Implement and enforce the provisions of the DPCO regarding the pricing of pharmaceutical products.
- Monitoring availability: Ensure that essential medicines are available and address shortages when necessary.
- Data collection: Gather information on drug production, imports, exports, and market shares of pharmaceutical companies.
- Advisory role: Provide the government with recommendations on drug price revisions and policy changes related to pharmaceuticals.
- Legal matters: Handle legal cases and disputes arising from pricing and availability issues.
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