National Pharmaceutical Pricing Authority

National Pharmaceutical Pricing Authority

The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India. National Pharmaceutical Pricing Authority (NPPA) was constituted vide Government of India Resolution dated 29th August 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals and Fertilizers as an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.

Drug Price Control Orders

The NPPA regularly publishes lists of medicines and their maximum ceiling prices. The latest DPCO was released in 2013 which has a list of 384 drugs. On 4 December 2017, it was announced that a Multi-disciplinary committee of experts for consultation on matters pertaining to the implementation of Drug Price Control Order (DPCO) including technicalities involved in pricing and new launches will be set up and it will have the member secretary of the National Pharmaceutical Pricing Authority (NPPA) as its convener.

The functions of NPPA  

The function of the National Pharmaceutical Pricing Authority is

  • To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
  • To deal with all legal matters arising out of the decisions of the Authority.
  • To monitor the availability of drugs, identify shortages, if any, and take remedial steps.
  • To collect/ maintain data on production, exports and imports, market share of individual companies, the profitability of companies etc, for bulk drugs and formulations.
  • To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.
  • To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government.
  • To render advice to the Central Government on changes/ revisions in the drug policy.
  • To render assistance to the Central Government in parliamentary matters relating to drug pricing.

Initiatives: Price monitoring and resource unit (PMRU) The National Pharmaceutical and Pricing Authority(NPPA) under its program called "Consumer awareness, publicity and price monitoring" has set up 12 Price monitoring and resource units in various States and UTs.It has planned to set up such units in all 36 states and UTs for better outreach of NPPA in the states as these units will help the NPPA and State drug controller to ensure the accessibility of drugs at affordable prices.

The PMRUs are societies registered under the Societies Registration Act, 1860 under the direct supervision of the State drug controller with its "board of governors" containing nominees of state and central government apart from other stakeholders. They will be funded by NPPA for their recurring and non-recurring expenses.

Govt Resolution:- Click here To Download