The National Pharmaceutical Pricing Authority (NPPA) has stated that charging different prices below the applicable ceiling price or maximum retail price (MRP) to different sectors by pharmaceutical companies is not under the purview of the Authority. It was responding to an allegation raised by the Jammu Pharmaceutical Distributors Association (JDPA) recently through a press conference.
JDPA alleged that pharmaceutical companies are resorting to corrupt practices by selling most of the medicines at different prices to different sectors despite having the same MRP and this is happening with active connivance of the NPPA.
The Association, according to a report, alleged that such practices are resulting in loss of huge sums of money to the people and to the government.
It added that it will be most relevant here to state that NPPA takes action on violation of ceiling prices fixed by it for scheduled formulations, retail prices fixed by it for new drugs and increasing MRP of non-scheduled drugs by more than 10% during the previous 12 months as provided under Para-20 of the Drug Price Control Order (DPCO), 2013.
“Further, charging different prices below the applicable ceiling price/MRP to different sectors by pharmaceutical companies is not under the purview of NPPA. It is done purely on commercial terms by the companies which are not under the ambit of the regulatory framework of NPPA,” it added.
National Pharmaceutical Pricing Authority is a regulatory body under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India and is committed to ensure affordability and accessibility of medicines by fixing the ceiling price for scheduled formulations and monitoring the prices of non-scheduled formulations.
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