Govt's Price Cut on Essential Drugs Saves Patients Rs 3,788 Crore Annually

The National List of Essential Medicines (NLEM) is kept by the Ministry of Health and Family Welfare, which falls under Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO, 2013). The ceiling prices of such essential drugs are determined by the National Pharmaceutical Pricing Authority (NPPA), which works under the aegis of the Department of Pharmaceuticals (DoP).

All producers and marketers handling scheduled drugs have to ensure that their products are sold within the price ranges fixed by NPPA, including the Goods and Services Tax (GST) applicable. Moreover, NPPA establishes retail prices for newly launched drugs, as manufacturers and marketers are obliged to adhere to the notified prices.

For non-scheduled drugs, the manufacturers can modify the Maximum Retail Price (MRP) but cannot raise it by over 10% in a 12-month period. Up to March 12, 2025, NPPA had fixed ceiling prices for 928 scheduled formulations and retail prices for more than 3,200 new drugs. Implementation of NLEM 2022 resulted in an average price cut of about 17%, yielding estimated annual savings of ₹3,788 crore to patients. Price details are exhaustively provided on the official website of NPPA. Detailed pricing information is on NPPA's website.

Government Actions towards Reasonably Priced Medicines:

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)

For the purpose of making necessary medicines available and affordable, the government has initiated the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). This scheme allows the sale of quality generic medicines at Jan Aushadhi Kendras (JAKs) at rates that are usually 50% to 80% cheaper compared to branded drugs in the market.

Affordable Medicines and Reliable Implants for Treatment (AMRIT)

Under the AMRIT initiative, managed by the Department of Health and Family Welfare, patients suffering from critical illnesses such as cancer and cardiovascular diseases can purchase medicines, surgical implants, and other essential medical supplies at discounts of up to 50% through designated AMRIT pharmacy stores set up in select hospitals and institutions.

Free Drugs Service Initiative

To further support patients seeking treatment at public healthcare facilities, the government has introduced the Free Drugs Service Initiative under the National Health Mission. Through this program, financial assistance is provided to states and union territories for the supply of essential medicines. The availability of medicines is structured as follows:

• 106 medicines at Sub-Health Centers

• 172 medicines at Primary Health Centers

• 300 medicines at Community Health Centers

• 318 medicines at Sub-District Hospitals

• 381 medicines at District Hospitals

Expansion of the PMBJP Product Basket:

Currently, the PMBJP scheme covers 2,047 medicines and 300 surgical items, medical consumables, and devices. These include medicines for major therapeutic areas such as cardiovascular diseases, cancer treatment, diabetes management, anti-infectives, anti-allergy drugs, gastrointestinal treatments, and nutraceuticals. The Department of Pharmaceuticals has set a target to expand this product range to 2,100 medicines and 310 surgical and medical products by March 31, 2025.

Monitoring and Enforcement of Drug Pricing:

The NPPA actively monitors the pricing of both scheduled and non-scheduled drugs through multiple sources, including:

• Reports from State and Union Territory Price Monitoring Resource Units (PMRUs)

• Inputs from State Drug Controllers (SDCs)

• Market surveys and sample analysis

• Data from market-based sources

• Consumer complaints submitted through platforms such as the Pharma Jan Samadhan (PJS) portal, Centralized Public Grievance Redress and Monitoring System (CPGRAMS), and other reliable channels

Cases of overpricing or non-compliance are handled by NPPA under the provisions of DPCO, 2013.

Government Statement on Drug Pricing:

This information was shared by the Union Minister of State for Chemicals and Fertilizers, Anupriya Patel, in a written response to a question in the Rajya Sabha.

(Input from various sources)

(Rehash/Sai Sindhuja K/MSM)