Govt Doesn't Control Medicine Prices, Says Health Minister Amid Medicine Price Hike

Union health minister Mansukh Mandaviya on Monday, April 4, said that the government has no hand in controlling medicine prices. His comments came a day after prices of 800 essential medicines such as paracetamol, azithromycin and ciprofloxacin hydrochloride are likely to rise. Mandaviya said medicine price hike is based on Wholesale Price-based Index, or WPI inflation, and will be impacted by the rise and fall accordingly.

“Government has not increased price of any medicines. Price of essential medicines is linked to Wholesale Price Index (WPI). If WPI goes up, the price of essential medicines goes up and if it goes down then price come down. Government does not control medicines prices,” the health minister was quoted as saying by news agency ANI on the day.

Earlier last month, the National Pharmaceutical Pricing Authority (NPPA) said  that the annual change in Wholesale Price Index (WPI) works out as 10.76 per cent. This was likely to trigger a price hike in 800 medicines and medical equipment.

“Based on the WPI (Wholesale Price Index) data provided by the office of the Economic Advisor, Ministry of Commerce and Industry, the annual change in WPI works out as 10.76607 per cent during the calendar year 2021 over the corresponding period in 2020,” the NPPA notice said.

Though there was no notice regarding the hike in medicine prices, the same are expected to rise 10.7 per cent from April 1. These include over 800 scheduled medicines on the National List of Essential Medicines, used to treat fever, infections, skin diseases, high blood pressure, anaemia and heart diseases. The prices of medicines like Paracetamol, Phenobarbitone, Phenytoin Sodium, Azithromycin, Ciprofloxacin Hydrochloride and Metronidazole are expected to rise after the notice. Prices of oral rehydration salts, glucose injections, contraceptives like copper IUDs, condoms, insulin injections, Vitamin C tablets, and multivitamin tablets are also likely to rise. It must be noted that these drugs make for around aggregate domestic pharmaceutical retail market of India.

“This is brought to the notice of all concerned for further action as per the provisions of Drugs (Price Control) Order, 2013,” it added. The change in WPI is announced by the NPPA every year. This is in accordance with The Drugs (Price Control) Order, 2013, or DPCO, 2013.

Mandaviya;s comments came following criticism by the opposition. In 2020, the National Pharmaceutical Pricing Authority, or NPPA, had notified an increase of 0.53 per cent in Wholesale Price Index, as compared with 1.88 per cent in 2020. In 2019 and 2018, it was 4.26 per cent and 3.43 per cent, respectively.

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