Government-controlled medicines, including those for cancer, diabetes, heart conditions, and antibiotics, are set to become more expensive by 1.7%. The price hike comes as a result of increasing costs for raw materials and other expenses within the pharmaceutical industry. This move is expected to provide some relief to pharmaceutical companies, which have been facing rising production costs.

Rajiv Singhal, General Secretary of the All India Organisation of Chemists and Druggists (AIOCD), explained that the price hike would not immediately affect consumers. He noted that it could take two to three months before the new prices are visible in the market due to the typical 90-day stock of medicines already in circulation. As a result, the impact of the price increase will be gradual, with the new prices becoming more noticeable in the coming months.

The price hike follows concerns over the pricing practices of pharmaceutical companies. A recent study by the Parliamentary Standing Committee on Chemicals and Fertilisers found that pharma firms had repeatedly violated regulations related to medicine pricing, often exceeding the allowable price hikes. The National Pharmaceutical Pricing Authority (NPPA), the agency responsible for regulating drug prices in India, identified 307 instances of such violations. The NPPA sets ceiling prices for drugs under the Drug (Prices Control) Order (DPCO), 2013, and all manufacturers are required to sell medicines at or below these ceiling prices, plus any applicable Goods and Services Tax (GST).

Despite the upcoming price increase, the Ministry of Chemicals and Fertilisers had previously announced that the price ceiling on medicines under the National List of Essential Medicines, 2022, has resulted in significant savings for patients. The estimated annual savings for patients due to these price controls is approximately Rs 3,788 crore. The price hikes, though modest, may be a response to the growing financial pressures faced by pharmaceutical companies while still aiming to maintain affordability for patients.

IT.