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?

• The National Pharmaceutical Pricing Authority (NPPA) has approved an increase in the ceiling prices of eleven scheduled formulations of eight drugs by 50% of their current ceiling prices.
• Elaborating on the need to bring in the increase in price, the authority said that this was done to ensure availability of essential drugs at affordable prices and ensuring affordability without jeopardising access to such medicines.
• The move was initiated invoking extraordinary powers under the DPCO, 2013, and in larger public interest, the move was initiated.
• Earlier such extraordinary powers have been invoked by NPPA in 2019 and in 2021 whereby price of 21 and 9 formulations, respectively, were increased by 50% so as to ensure continued availability of essential drugs for the public.

https://www.thehindu.com/sci-tech/health/nppa-revises-the-ceiling-prices-of-eight-scheduled-drugs-to-meet-the-twin-objectives-of-availability-and-affordability/article68760801.ece