The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilizers, has announced the fixation of retail prices for certain new drug formulations, aiming to ensure affordability and accessibility for consumers. This notification was published on March 27, 2025.
The NPPA’s decision, made under the Drugs (Prices Control) Order, 2013 (DPCO 2013), sets the retail price for specified formulations, excluding Goods and Services Tax (GST). The prices are detailed in the official notification, outlining the formulation, strength, unit, manufacturer, and marketing company.
Key Points for Manufacturers and Retailers
Manufacturers of the specified “new drugs” are required to adhere to the retail prices set by the NPPA.
Manufacturers are permitted to add GST to the retail price only if they have actually paid or are liable to pay it to the government. Manufacturers must calculate the retail price for packs of the formulations according to the NPPA’s specified retail price, as per DPCO 2013 guidelines.
Retailers and dealers are mandated to display the manufacturer’s price list and any supplementary lists in a prominent location for easy consumer access.
The fixed retail prices apply only to the manufacturers and marketers who applied for price fixation/revision and meet all statutory requirements.
Manufacturers or marketing companies that fail to comply with the fixed retail prices will be liable for overcharging penalties, including the deposit of the overcharged amount with interest, as per DPCO 2013 and the Essential Commodities Act, 1955.
The new price fixation orders supersede any previous retail price orders for the specified formulations and manufacturers.
The NPPA will monitor compliance with the new price regulations and take appropriate action against any violations. Manufacturers and retailers are urged to adhere to the guidelines to avoid penalties and ensure the availability of affordable medicines.
