Drugs ceiling prices to be revised every 5 years: DoP amends DPCO 2013 Act

This order has been brought to effect with a recent amendment in paragraph 18 of the Drugs Prices Control Order (DPCO), 2013.

With the amendment, the Department of Pharmaceuticals has excluded a provision in the Drugs (Prices Control) Order, 2013, that allowed a price revision on drugs based on Moving Annual Turnover (MAT) when the Ministry of Health and Family Welfare revises the National List of Essential Medicines (NLEM).

This came in line with the amendment made by the Department of Pharmaceuticals in the Drugs (Prices Control) Order, 2013, in paragraph 18, for clause (i).

As per the Drugs (Prices Control) Order, 2013, paragraph 18, clause (i), "The revision of ceiling prices on the basis of moving annual turnover value shall be carried out,-(i) as and when the National List of Essential Medicines is revised by the Ministry of Health and Family Welfare or five years from the date of fixing the ceiling price under this Order, whichever is earlier;"

According to the new amendment, the clause now simply specifies that the price revision can be conducted every five years from the date of setting the cap price.

The gazette notification said,

"In exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955), the Central Government hereby makes the following Order further to amend the Drugs (Prices Control) Order, 2013, namely:-

1. Short title and commencement.-

(1) This Order may be called the Drugs (Prices Control) Third Amendment Order, 2021.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Drugs (Prices Control) Order, 2013, in paragraph 18, for clause (i), the following clause shall be substituted, namely:-

"(i) every five years from the date of fixing the ceiling price under this Order for formulations as specified under the SCHEDULE - I."

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