Essential medicines including painkillers, antibiotics, and anti-infectives are set to see a slight increase of 0.00055% in their prices from April 1. However, as per The Economic Times, a lobby group that represents more than 1,000 Indian drug makers urged the government to allow prices of all scheduled formulations to be increased by 10% with immediate effect. It had also sought a 20% increase in the prices of non-scheduled drugs.
The drug pricing regulator announced an annual change of 0.0055% increase in prices of drugs in line with the annual change in the wholesale price Index. The change in prices is however applicable only to the medicines that come under the National List of Essential Medicines which cover more than 800 drugs.
"Based on the WPI data provided by the office of the Economic Advisor, Department of Industry and Internal trade Ministry of Commerce and Industry, the annual change in WPI works out as (+) 0.00551% during the calendar year 2023 over the corresponding period in 2022," said the notice by the National Pharmaceutical Pricing Authority (NPPA)
The Economic Times quoted pharma industry insider and mentioned that this meagre price rise will not be enough to cheer the sector especially after two massive hikes of 12% and 10% in prices last year and 2022.
Meanwhile, an executive associate with the NGO told the publication that this will be a good move in the interest of maintaining the affordability of these drugs.
"Drastic hikes distort price controls. After witnessing two massive hikes back to back, this will be a good move in the interest of maintaining the affordability of these drugs," the executive told The Economic Times
The list of essential medicines includes drugs like paracetamol, antibiotics such as azithromycin used to treat bacterial infections, anti-anaemia medicines, vitamins, and minerals. Some drugs used for treating moderately to severely ill Covid-19 patients and steroids are also on the list.
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Price changes in medicines are allowed once a year and the pharma industry has been demanding a substantial increase in prices as it has been battling rising input costs.
The Economic Times report quoted Industry Experts and said that over the last few years, prices of some key active pharmaceutical ingredients have increased between 15% and 130%, with the price of paracetamol jumping 130% and that of excipients increasing 18-262%.
Glycerine and Propylene Glycol which is used in every liquid preparation including syrups, oral drops, and sterile preparations have become costlier by 263% and 83%, respectively. Similarly, the prices of intermediates have grown between 11% and 175%.