Transparency and Regulation in Drug Pricing: Govt Framework and Consumer Access

To support the implementation of DPCO, 2013, the Integrated Pharmaceutical Database Management System (IPDMS) was developed.

The regulation of drug prices in India is guided by the National Pharmaceuticals Pricing Policy (NPPP), 2012, which establishes key principles for price control. These principles include (i) regulation based on the essentiality of drugs, (ii) price regulation applicable only to formulations (medications consumed by patients) rather than bulk drugs or intermediates, and (iii) a market-based pricing approach instead of cost-based pricing. Under this framework, the National Pharmaceutical Pricing Authority (NPPA), operating under the Department of Pharmaceuticals (DoP), determines ceiling prices as per the provisions outlined in the Drugs (Prices Control) Order (DPCO), 2013.

To support the implementation of DPCO, 2013, the Integrated Pharmaceutical Database Management System (IPDMS) was developed. The latest version, IPDMS 2.0, serves as an online mechanism for collecting market-based data on drugs and provides updated information on effective ceiling and retail prices. The database is regularly updated to maintain transparency and inform all stakeholders, including manufacturers, distributors, and consumers.

Under the DPCO, 2013, pharmaceutical manufacturers are mandated to submit price lists in Form-V (for drug formulations) and Form-VI (for medical devices) to dealers, State drug controllers, and the Government. These lists include critical details such as product information, pricing to distributors and retailers, price changes, and the effective date of revisions. Furthermore, retailers and dealers must prominently display these price lists at their business premises to ensure consumers are well-informed.

For consumer benefit, NPPA has launched a mobile application, Pharma Sahi Daam (PSD), available for download on both Android (Google Play Store) and iOS (Apple App Store) platforms. The app allows users to search for drug prices by brand name and composition while displaying ceiling and maximum retail prices. Additionally, NPPA publishes price notifications for all regulated drugs on its official website (www.nppaindia.nic.in). As part of its transparency measures, NPPA uploads draft price calculation sheets for proposed price revisions, including details such as price to retailer and moving annual turnover values. Stakeholders are given a 10-day window to provide feedback before NPPA finalizes pricing decisions.

These regulatory measures ensure transparency and accountability in drug pricing while making information readily accessible to consumers and industry stakeholders. As confirmed by Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written reply in Rajya Sabha, no changes to the existing price fixation process are currently under consideration.