In April, prices of essential medicines will increase by 10%
New Delhi: Prepare for a 10% increase in essential drugs from next month.
According to media reports, the hike is expected as the government prepares to give a nod to pharmaceutical companies to raise the prices of essential drugs including pain killers, anti-infectives and antibiotics.
Drugs are expected to become more expensive by 10%, as the change in the Wholesale Price Index (WPI) in 2021 was 10.8%.
Previously, the price increase for essential drugs was around 1 to 2%. In 2019, prices increased by around 2% while in 2020 the increase was 0.5%.
After the outbreak of the pandemic, API prices increased tremendously. An increase in freight rates, transport costs, etc., also adds to the cost of inputs.
As most of the pharmaceutical ingredients are imported from China, the supply has been interrupted during the pandemic, which has led to a spike in input costs during the pandemic.
The NPPA regulates the cost of drugs in India
The National Pharmaceutical Pricing Authority (NPPA), which is a government regulatory agency, controls drug prices in India.
It falls under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
The authority’s responsibility is to regulate drug prices and ensure their availability and accessibility at affordable prices.