Parliamentary Panel Raps DoP, NPPA for 5-Year Delay in Trade Margin Rationalisation Under DPCO
New Delhi: A parliamentary committee has expressed concern over the prolonged delay in formalizing a Trade Margin Rationalization (TMR) framework under the Drugs (Prices Control) Order, 2013, and recommended the Department of Pharmaceuticals (DoP) and the National Pharmaceutical Pricing Authority (NPPA) to expedite policy action to ensure affordable medicines for citizens.
The Committee noted that the TMR approach, capping trade margins to curb excessive pricing, was earlier implemented as a pilot for 42 high-price anti-cancer drugs and later for six COVID-related medical devices during the pandemic. These measures were taken by invoking extraordinary powers under Paragraph 19 of the DPCO, 2013, which allow such interventions only for a limited period.
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