54 medicines will see only 1 paisa hike: Health Ministry after media reports on drug price hike

"During the calendar year 2023 over the corresponding period in 2022, the annual change in WPI with base year 2011-12 was (+) 0.00551% as per data published by Department for Promotion of Industry and Internal Trade (DPIIT). Accordingly, the Authority in its meeting held on 20.03.2024 has approved the WPI increase @ (+) 0.00551% for the scheduled medicines," Health Ministry stated.

"The ceiling prices on 923 medicines are effective as on date. Based on the above mentioned WPI factor of (+) 0.00551%, there will be no change in the prevailing ceiling prices for 782 medicines and the existing ceiling prices will continue to prevail up to 31.03.2025. Fifty-Four (54) medicines with ceiling price ranging from Rs. 90 to Rs. 261 will have a miniscule increase of Rs. 0.01(one paisa). As the permissible price increase is miniscule, the companies may or may not avail this increase. Thus, in the year FY 2024-25, there will be almost no change in the ceiling price of medicines based on WPI," it noted.

"The WPI increase is the maximum increase permissible as per the DPCO, 2013 and the manufacturers may or may not avail this increase, keeping in view the market dynamics. The companies adjust their Maximum Retail Price (MRP) depending upon the ceiling price of their medicines, as MRP (excluding GST) can be any price which is less than the ceiling price. The revised prices will be applicable from 1st April 2024 and the detail of revised prices is available on NPPA’s website," it added.

In case of non-scheduled formulation, a manufacturer is at liberty to fix the price. However, no manufacturer of non-scheduled formulation can increase the MRP by more than 10% during preceding 12 months under Para 20 of DPCO, 2013.