What is National Pharmaceutical Pricing Authority (NPPA)?

Subject: Polity

Context:

National Pharmaceutical Pricing Authority (NPPA) in an office memorandum has “advised” manufacturers to comply with BIS standards for N95 mask.

Concept:

• 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.

Drugs (Prices Control) Order (DPCO)

• The Drugs Prices Control Order, 1995 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 inter alia 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.
• For the purpose of implementing provisions of DPCO, powers of Government have been vested in NPPA.

BIS

• BIS is the National Standard Body of India established under the BIS Act 2016 for the harmonious development of the activities of standardization, marking and quality certificationof goods.
• BIS has been providing traceability and tangibility benefits to the national economy in a number of ways – providing safe reliable quality goods; minimizing health hazards to consumers; promoting exports and imports substitute; control over proliferation of varieties etc. through standardization, certification and testing.