Context
NPPA increased ceiling prices of 8 essential drugs by 50% .
About National Pharmaceutical Pricing Authority (NPPA)
- Established: as an attached office of the Department of Pharmaceuticals (DoP) under the Ministry of Chemicals & Fertilizers.
- Acts as an independent regulator for drug pricing to ensure the availability and affordability of medicines.
- Functions: Fixes and revises prices of controlled bulk drugs and formulations under the Drugs (Prices Control) Order (DPCO), 1995-2013.
- Bulk Drug: Known as Active Pharmaceutical Ingredient (API), which provides the therapeutic effect of a medicine.
- Mandates of NPPA
- Implement DPCO: Enforces Drugs (Prices Control) Order under delegated powers.
- Legal Matters: Manages legal issues from NPPA decisions.
- Drug Availability Monitoring: Tracks drug availability, identifies shortages, and takes remedial action.
- Data Collection: Gathers data on production, exports, imports, and market share; conducts studies on drug pricing and the profitability of companies.
Drug Pricing Mechanism
- National List of Essential Medicines (NLEM): Medicines under NLEM are price-regulated; list includes drugs for fever, infection, heart disease, and hypertension (e.g., paracetamol, azithromycin).
- Health Ministry’s Role: Prepares a list of drugs for price regulation, included in Schedule 1 of DPCO by the Department of Pharmaceuticals.
- SCAMHP’s Role: The Standing Committee on Affordable Medicines and Health Products (SCAMHP)advises NPPA on vetting the list.
- Scheduled Drugs Pricing: As per DPCO 2013, scheduled drugs (~15% of the pharma market) have prices adjusted by WPI (Wholesale Price Index); the remaining 85% are allowed a 10% increase annually.
- Annual Price Change: Price increase for scheduled drugs is controlled, generally not exceeding 5%.
- Drugs and Cosmetics Act, 1940: Defines drug classification under schedules, with regulations on storage, sale, display, dispensing, labeling, and prescribing.
Source: TH
Previous Year Question
About three-fourths of world’s cobalt, a metal required for the manufacture of batteries for electric motor vehicles, is produced by
[UPSC Civil Services Exam – 2023 Prelims]
(a) Argentina
(b) Botswana
(c) the Democratic Republic of the Congo
(d) Kazakhstan
Answer: (c)
