The National Pharmaceutical Pricing Authority (NPPA) has fixed the retail prices for 19 pharmaceutical formulations. These prices are exclusive of Goods and Services Tax, if applicable. These prices were notified on January 1, 2024.
Manufacturers of specific formulations categorized as “new drugs” under the Drug Price Control Order (DPCO), 2013 (DPCO, 2013) are required to set the retail price as indicated in this notification.
Manufacturers can add Goods and Services Tax to the retail price only if they have already paid or are liable to pay the government on the mentioned retail price.
The retail price for these formulations should align with the price specified. Manufacturers must issue a price list in Form–V via IPDMS to the National Pharmaceutical Pricing Authority (NPPA) and submit copies to State Drug Controllers and dealers.
Retailers and dealers are mandated to prominently display the price list furnished by manufacturers, ensuring easy access for customers.
The fixed retail price is applicable only to individual manufacturers/marketers who have applied for price fixation/revision by submitting Form-I, fulfilling statutory requirements, including necessary licenses from the Central/State Licensing Authority.
Manufacturers/marketing companies failing to comply with specified retail prices are liable to deposit overcharged amounts with interest, as per the DPCO, 2013, and the Essential Commodities Act, 1955.
Any prior price orders for the specified formulations issued before this notification are superseded by the latest fixation of retail prices for manufacturers and marketing companies as specified in the table.
This directive underscores the government’s commitment to ensuring affordability and accessibility of essential drugs while holding manufacturers accountable for price regulation compliance. It seeks to streamline drug pricing mechanisms and maintain transparency in the pharmaceutical sector.