DRUG PRICES CONTROL ORDER

DRUG PRICES CONTROL ORDER

Subject : Governance

Context : No Interim Protection From Arrest To Kalra Till May 18 in Oxygen Black Marketing Case.He said that under the Drug Price Control Order (DPCO) 2013, there is a provision for adjusting the overcharged amount or refunding it.

Concept :

Drugs (Prices Control) Order (DPCO)

• The Drugs Prices Control Order is an order issued by the Government of India under Sec. 3 of Essential Commodities Act, 1955 to regulate the prices of drugs.
• The Order interalia provides the list of price controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions etc.
• Under the provisions of DPCO 2013, only the prices of drugs that figure in the National List of Essential Medicines (NLEM) are monitored and controlled by the regulator, the National Pharmaceutical Pricing Authority.
• Essential medicines are those that satisfy the priority healthcare needs of the majority of the population. The primary purpose of NLEM is to promote rational use of medicines considering the three important aspects i.e. cost, safety and efficacy.

National Pharmaceutical Pricing Authority (NPPA)

• National Pharmaceutical Pricing Authority (NPPA) was constituted as an attached office of the Department of Pharmaceuticals (DoP) in 1997 under Ministry of Chemicals & Fertilizers as an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.
• It fixes ceiling prices of scheduled essential drugs and monitors Maximum Retail Prices (MRPs) of remaining non-scheduled medical devices, which have been regulated as drugs.