On December 30th, 2024, the Employees’ State Insurance Corporation (ESIC) issued an important notification regarding the revision of its Pharmaceuticals Purchase Policy (PPP). This revision comes in line with the provisions set out in the Drug Price Control Order (DPCO) of 2013 and takes into account the recent increase in raw material costs.
Key Highlights of the Notification
Revised Price List: The notification includes an updated price list under the Pharmaceuticals Purchase Policy (PPP), which covers a total of 159 formulations. These formulations are critical in ensuring the availability of essential medicines for workers enrolled in the Employees’ State Insurance (ESI) scheme.
Effective Date: The revised rates for the formulations will be effective starting October 15th, 2024. This means that all purchases made under the PPP after this date will reflect the new pricing structure.
Context and Reasons for the Revision
The revision has been prompted by the provisions of the Drug Price Control Order (DPCO) 2013, which governs the pricing of medicines in India, as well as the increase in raw material rates. With the rising costs of pharmaceutical raw materials, ESIC has adjusted its pricing to ensure that essential drugs remain accessible while also addressing the challenges posed by inflationary pressures in the pharmaceutical sector.
