National Pharmaceutical Pricing Authority:
The Parliamentary Standing Committee has criticized the National Pharmaceutical Pricing Authority (NPPA) for allowing a 50% price increase on 11 essential drug formulations in 2024.
- In 2024, NPPA approved price hikes for drugs including those used for treating bacterial infections, asthma, and bipolar disorder in line with the Drugs Prices Control Order, 2013 guided by CAMPH (Committee on Affordable Medicines and Health Products), NITI Aayog.
- Key Observations & Recommendations of the Standing Committee on Drug Pricing:
- The Standing Committee on Chemicals and Fertilizers expressed serious concerns about the potential negative effects of the price hikes on public health, particularly in the context of affordability and access to essential medicines.
- Limited Justification: The committee noted that the NPPA’s justification of price hikes was based on the increased cost of production, active pharmaceutical ingredients (APIs), and exchange rates, but the impact on the affordability of medicines was not adequately considered.
- Regulatory Gaps in Cancer Drug Pricing: The Committee on Petitions (Rajya Sabha) observed that while the number of anti-cancer drugs under price control in NLEM 2022 increased from 40 to 63, a large number of oncology medicines remain outside the Drugs (Prices Control) Order, 2013.
- This lack of statutory price regulation has led to high and often unaffordable cancer drug prices, severely restricting patient access.
