Fact Check: Will The Prices Of Medicines Increase From This Month?

New Delhi: The government has put to rest speculations based on some media reports that there will be a hike of up to 12 per cent in the prices of medicines from April 2024. These reports further claim that more than 500 medicines will be affected by this increase in price. Such reports are false, misleading and malicious, according to an official release by the Ministry of Health and Family Welfare.

As per the provisions of Drug Price Control Orders (DPCO) 2013, drugs are categorized as scheduled and non-scheduled formulations. The formulations which are listed in Schedule-I of DPCO 2013 are scheduled formulations and the formulations that are not specified in Schedule-I of DPCO 2013 are non-schedule formulations.

The National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals annually revises the ceiling prices of scheduled medicines based on the Wholesale Price Index (WPI). The scheduled medicines included in the Schedule-I of the DPCO, 2013 are essential medicines. During the calendar year 2023 over the corresponding period in 2022, the annual change in WPI with the base year 2011-12 was (+) 0.00551% as per data published by the Department for Promotion of Industry and Internal Trade (DPIIT). Accordingly, the Authority in its meeting held on on March 20, has approved the WPI increase @ (+) 0.00551% for the scheduled medicines.

The ceiling prices on 923 medicines are effective as of date. Based on the WPI factor of (+) 0.00551%, there will be no change in the prevailing ceiling prices for 782 medicines and the existing ceiling prices will continue to prevail up to 31.03.2025. Fifty-four (54) medicines with ceiling prices ranging from Rs. 90 to Rs. 261 will have a minuscule increase of Rs. 0.01(one paisa). As the permissible price increase is minuscule, the companies may or may not avail of this increase. Thus, in the year FY 2024-25, there will be almost no change in the ceiling price of medicines based on WPI.

The WPI increase is the maximum increase permissible as per the DPCO, 2013 and the manufacturers may or may not avail of this increase, keeping in view the market dynamics. The companies adjust their Maximum Retail Price (MRP) depending on the ceiling price of their medicines, as MRP (excluding GST) can be any price which is less than the ceiling price. The revised prices will be applicable from April 1, 2024.

In the case of non-scheduled formulation, a manufacturer is at liberty to fix the price. However, no manufacturer of the non-scheduled formulation can increase the MRP by more than 10% during the preceding 12 months under Para 20 of DPCO, 2013.