The National Pharmaceutical Pricing Authority

  • April 20, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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The National Pharmaceutical Pricing Authority

Subject: Economy

Why in the news?

The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals and Fertilizers, has fixed the price of 15 key drug formulations, used to treat diseases, including diabetes.

Concept:

NPPA was constituted by the Government of India in 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers as an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.

It was made to fix/revise prices of controlled bulk drugs and formulations and to enforce price and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995-2013 (DPCO).

Function of National Pharmaceutical Pricing Authority

  1. To implement and enforce the provisions of the Drugs (Prices Control) Order in according to the powers delegated to it.
  2. To deal with all legal matters arising out of the decisions of the Authority.
  3. To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
  4. To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc., for bulk drugs and formulations.
  5. To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.
  6. To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government.
  7. To render advice to the Central Government on changes/ revisions in the drug policy.
  8. To render assistance to the Central Government in the parliamentary matters relating to the drug pricing
economy The National Pharmaceutical Pricing Authority