New Delhi: The National Pharmaceutical Pricing Authority (NPPA) on Wednesday announced that manufacturers may increase prices of scheduled formulations included in the National List of Essential Medicines (NLEM) by 0.64 per cent, on the basis of changes in the wholesale price index (WPI).
“Based on the WPI data provided by the Office of the Economic Advisor, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, the annual change in WPI works out to +0.64956 per cent during calendar year 2025 over the corresponding period of 2024,” the drug pricing regulator said in a notification dated March 25.
With this, manufacturers will be allowed to increase the maximum retail price (MRP) of scheduled formulations on the basis of WPI without needing any prior approval from the government in this regard.
A scheduled formulation is any medicine, whether branded or generic, that is included in Schedule I of the Drugs (Prices Control) Order (DPCO), also known as the NLEM.
There are approximately 900 formulations in the NLEM, which include essential medications such as pain relievers, antibiotics, and chronic disease treatments, among others.
The prices of these scheduled formulations are controlled by the NPPA, meaning they have a ceiling price that manufacturers cannot exceed.
While revision of ceiling prices is a routine exercise undertaken by the NPPA, this comes at a time when drugmakers are facing the challenge of increased input costs due to supply restrictions linked to the conflict in West Asia.
The drug pricing regulator is vested with the responsibility of fixing and revising prices of pharmaceutical products, enforcing provisions of the DPCO, and monitoring the prices of both controlled and decontrolled drugs.
