About NPPA

• The National Pharmaceutical Pricing Authority was established in 1997 as an independent body of experts to regulate the pricing of drugs.
• It has been constituted as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.
• The Authority has been entrusted with the task of 
  • Fixation/revision of prices of pharmaceutical products (bulk drugs and formulations), 
  • Enforcement of provisions of the Drugs (Prices Control) Order (DPCO). 
  • Monitoring of the prices of controlled and decontrolled drugs in the country.
• The NPPA currently fixes prices of drugs placed in the National List of Essential Medicines (NLEM) under Schedule-I of the DPCO. 
• Non-scheduled drugs are allowed an increase of up to 10 per cent in prices every year, which is monitored by the NPPA.
• NPPA can also fix the price for non-scheduled drugs by invoking extraordinary powers in public interest, under the Drugs (Prices Control) Order, 2013.

Why in News?

• • Prices of 384 essential drugs and over 1,000 formulations are set to see a hike of over 11%, due to a sharp rise in the Wholesale Price Index (WPI). 

• Annual hikes in the prices of drugs listed in the National List of Essential Medicines (NLEM) are based on the WPI.  

• The National Pharmaceutical Pricing Authority said the annual change in WPI was 12.12% for the calendar year 2022. Last year, the National Pharmaceutical Pricing Authority (NPPA) announced a 10.7% change in the Wholesale Price Index (WPI). 
• Every year, the NPPA announces a change in the Wholesale Price Index (WPI) in accordance with the Drugs (Price Control) Order, 2013, or DPCO, 2013.

https://www.thehindu.com/sci-tech/health/price-of-essential-medicines-including-painkillers-antibiotics-set-to-see-a-hike/article66672738.ece