National Pharmaceutical Pricing Authority (NPPA)

The National Pharmaceutical Pricing Authority was set up as an attached office of the Department of Chemicals and Petrochemicals on August 29, 1997. It is responsible for regulating the prices of drugs in the country and ensuring their availability, accessibility and affordability to every citizen of the country. 

During the crisis of the ongoing COVID-19 pandemic in the country, NPPA has been actively responsible in capping the prices for various medicines, ventilators and other drugs which have been useful in treating the affected patients.

For the development of the coronavirus vaccine in India, the Government had launched Mission COVID Suraksha, wherein clinical development, manufacturing and licensing of Indian vaccines was promoted. Read about the mission in the linked article.

National Pharmaceutical Pricing Authority [UPSC Notes]:-Download PDF Here

In this article, we shall discuss at length the National Pharmaceutical Pricing Authority in India, its objectives and other important aspects. All government and IAS Exam aspirants must go through the contents of the article discussed further below. 

UPSC aspirants can also refer to the links given below:

Functions of NPPA

Given below are roles and responsibilities that are performed by the National Pharmaceutical Pricing Authority:

• To implement and enforce the provisions of the Drugs Price Control Order (DPCO), 1995/2013  in accordance with the powers delegated to it
• To undertake and/or sponsor relevant studies in respect of pricing of drugs/formulations
• To monitor the availability of drugs, identify shortages, if any, and to take remedial steps
• To collect/maintain data on production, exports and imports, market share of individual companies, the profitability of companies etc. for bulk drugs and formulations
• To deal with all legal matters arising out of the decisions of the Authority
• To render advice to the Central Government on changes/revisions in the drug policy
• To render assistance to the Central Government in parliamentary matters relating to drug pricing

Significance of NPPA

It is important to fix the prices of certain important drugs so that they can be easily affordable and accessible to every citizen of the county and the National Pharmaceutical Pricing Authority ensures the same. It mandates that no supplier can sell a drug more than its Maximum Retail Price (MRP).  

NPPA played a very crucial role during the pandemic time in the country as many medical suppliers were selling drugs at higher prices which were unaffordable for many. Thus, this authority fixed the prices so that they could be availed easily. 

NPPA Initiatives

The National Pharmaceutical Pricing Authority (NPPA) is headquartered at New Delhi and to increase its reach across the country, NPPA has set up a Price Monitoring and Resource Unit (PMRU) in the various Indian States and Union Territories. 

These PMRU’s have been set up under the Consumer Awareness, Publicity and Price Monitoring (CAPPM) scheme. As of January 2021, there are 14 states/UTs where these PMRUs have already been set up. The pharmaceutical authority aims to set up a price monitoring unit in each and every state and union territory across India. 

States/UTs with PMRU already set up – Kerala, Odisha, Gujarat, Rajasthan, Haryana, Nagaland, Tripura, Uttar Pradesh, Punjab, Andhra Pradesh, Mizoram and Jammu & Kashmir. The latest edition in this list is Karnataka and Goa, where the PMRU was set up in 2020. 

Also, visit the linked article and read about the Drug Controller General of India (DCGI), the head of the Central Drugs Standard Control Organisation (CDSCO) in the country. 

National Pharmaceutical Pricing Authority [UPSC Notes]:-Download PDF Here

Aspirants preparing for the upcoming civil services exam can refer to the detailed subject-wise IAS Syllabus and get the list of topics to be prepared for the UPSC examination. 

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