National Pharmaceutical Pricing Authority (NPPA)

  • NPPA is an independent body under Department of Pharmaceuticals under the Union Ministry of Chemicals and Fertilizers.
  • Its functions are to:
    • fix/revise the controlled bulk drugs prices and formulations,
    • enforce prices and availability of the medicines under theĀ Drugs (Prices Control) Order, 1995/2013,
    • recover amounts overcharged by manufacturers for the controlled drugs from the consumers
    • monitor the prices of decontrolled drugs in order to keep them at reasonable levels.
  • NPPA fixes ceiling price of essential medicines that are listed in Schedule I of DPCO, 2013.
  • The calculation of prices cap for essential drugs is based on simple average of all medicines in particular therapeutic segment with sales of more than 1%.
  • Medicines that are not under price control, manufacturers are allowed to increase the maximum retail price by 10% annually.

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