The National Pharmaceutical Pricing Authority (NPPA), which oversees medicine pricing in India, has approved a price increase of 12% starting on April 1st, 2023, for scheduled drugs that are subject to price controls, citing a 10.7% change in the wholesale price index (WPI). 

This will influence the prices of 384 important drugs that are listed on the National List of Essential Medicines (NLEM) compiled by the Ministry of Health, including paracetamol, ibuprofen, cetirizine, amoxicillin, and azithromycin. This is the largest annual increase on record.

The most recent regulation, which was released on March 27, 2023, by the NPPA, Department of Pharmaceuticals, and Ministry of Chemicals and Fertilisers, has drawn a lot of criticism from experts who believe it violates the Drug Price Control Order (DPCO) of 2013. The current increase of 12% is the largest since the DPCO 2013 took effect, and for the second consecutive year, the WPI is higher than the annual allowable price increase for non-scheduled formulations (10%).

The National President of the Indian Medical Association, Dr. Sharad Kumar Agarwal, urged that the first reaction to any price hike will always be negative, but in hindsight, if there is an increase in the prices of raw materials and there is an organic increase in prices everywhere, then it becomes essential to consider asking the government body to increase the price of the drug.

Over the last three years, the Indian pharmaceutical industry has been pushing for a significant increase in drug prices to cover the growing input costs brought on by the pandemic. Industry analysts have revealed that during the past two years, the cost of shipping, plastics, and packaging materials, as well as the pricing of active pharmaceutical ingredients (APIs), have all climbed dramatically, pushing up manufacturing expenses.

Dr. Rajiv Singhal, Secretary, All India Organization of Chemists and Druggists (AIOCD), stated that if the price of the medication is not raised, the producers will be forced to lower their manufacturing capacity, which may result in substandard quality or a shortage of medication for the consumers. 

(Source: https://health.economictimes.indiatimes.com/news/pharma/384-essential-medications-to-be-dearer-by-12-per-cent-from-april-1/99149427 )