Prices of essential medications will only rise by this amount; 782 medication prices will remain unchanged

The Ministry of Health and Family Welfare has termed false and misleading the media reports in which the prices of some essential medicines were increasing by 12 per cent from April 2024. These reports claimed that more than 500 medicines would be affected by this increase in price. The wholesale price index was being said to be the basis of this increase. The Health Ministry says the National Pharmaceutical Pricing Authority (NPPA) annually revises the maximum prices of notified medicines based on the Wholesale Price Index.

The wholesale price index has increased by 0.00551%, according to a statement from the Health Ministry. Based on this, 782 medicines' current maximum prices will remain unchanged, but 54 medicines' prices will marginally increase by one paisa. Drugs are classified into scheduled and non-scheduled formulations by the 2013 Drug Price Control Order (DPCO). Formulations that are included in DPCO 2013 Schedule I are scheduled formulations; formulations that are not included in Schedule I are non-scheduled.

Based on the Wholesale Price Index, the Department of Pharmaceuticals' National Pharmaceutical Pricing Authority (NPPA) updates the maximum prices of scheduled drugs once a year. Schedule medicines included in Schedule-1 of DPCO, 2013 come under the category of essential medicines. According to the data released by DPIIT, the annual increase in the wholesale index during 2023 was 0.00551 per cent. Following this, the Authority in its meeting held on 20.03.2024 approved an increase of 0.00551% in the Whole Sale Index for Scheduled Medicines.

According to the ministry, maximum prices are applicable on 923 medicines. There will be no change in the maximum prices of 782 medicines based on a 0.00551 per cent increase in the Whole Sale Price Index and the existing prices will remain in force till 31.03.2025. There will be a marginal increase of one paisa in the prices of 54 medicines whose maximum price ranges from Rs 90 to Rs 261. Since the price increase is very low, companies may or may not take advantage of this increase. Thus, there will be almost no change in the maximum price of medicines based on the Wholesale Price Index in the year 2024-25.

In the case of non-scheduled formulations, the drug manufacturers are free to decide the price. However, no manufacturer of non-scheduled formulation can increase the MRP by more than 10 per cent during the last 12 months under para 20 of DPCO, 2013.