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Are the prices of medicines and drugs controlled by the Government?


Date: 07 Feb 2016    Group: Government    Category: Central Government   

Different medicines and drugs are being sold in the market at varying prices. Who determines the selling prices of medicines and drugs? Is there any Government control over the selling prices of medicines and drugs? Also is there any control over the prices charged by pathological laboratories?

Searching for information about pricing of drugs and medicines? Experts will resolve your query on this page.


Author: Mahesh    08 Feb 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

The prices and the availability of the raw chemicals is controlled by government. And this way indirectly the medicine price is controlled by government as well. Most of the labs and pharma companies however are often manipulating the government to raise the prices. So this reflects in their actions every year. And the price of the medicine changes accordingly. Some governments also control the prices as many medical institution are not for profit. Government also have the body for regulating the type of medicine to bring into the market. And also the prices of existing medicine and chemicals are controlled.

Author: Venkiteswaran.    08 Feb 2016      Member Level: Diamond     Points : 6  (Rs 6)    Voting Score: 0

Not all drug prices are controlled. There is a list of some essential medicines which are available in the National List of Essential Medicines.(NLEM). The government under its mechanism National Pharmaceutcal Pricing Authority issues periodical notifications revising the prices of some or all or a few medicines from the list taking into consideration various parameters and conditions.

You can get some raw idea bout the drug price control from an article in Indiastudychannel.com under title "Can the new Drug Price Control Order 2013 make medicine cheaper and more affordable?"

The present discussion and news is because of the government has withdrawn the excise duty exemption given to about 75 or 76 drugs that were earlier imported and not available in India. The government's justification is that these drugs are now manufactured in India or are available as generic drugs here.
My reading on this matter tells me that government has not withdrawn exemptions on medicines that are essential and that ae not at all available in India.
Hence in the present context the misunderstanding and panic could have been avoided if the government would have come with more simple press note giving list of those medicines and giving the details of the manufacturers here and the price at which they are available here.

Vested interests especially those who import the same medicines either for high end customers or for own benefits may now protest. Even otherwise also the multinational drug manufacturers are putting many spokes in the government's policies and decisions to make drugs affordable and cheaper.

Very recently US had taken decision which affects Indian drug exporters who were able to supply at cheaper rates. That was aimed at protecting US manufacturers. But when Indian government takes some decision to help Indian manufacturers, they and other multinationals protest and resist.

We have to see now what pressures they all put on our government.


Author: Sheo Shankar Jha    08 Feb 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

There exists a regulatory mechanism by the Government to control the prices of the drugs along with the consultation of the Pharmaceutical - companies. However, The Government takes enough care for the medicines of Cancer, Diabetes, Blood - pressure and TB etc for the welfare of general - public.
In this context, one thing may be noted that all all the drugs do not come under the purview of price - regulation. Only a selected medicines have been included in the National List of Essential Medicines and for which the the Goverment takes maximum care to make the same cheaper.


Author: [Anonymous]    15 Feb 2016      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

Government controls the pricing of anything that is manufacturing in India.
This can be tax, Raw material cost , service tax or anything else.
I mean, there is nothing which we sale without paying to our government.
The amount government receives from the manufacturer, that is indirectly added to the cost of that product.


Author: Reena Upadhya    27 Jul 2016      Member Level: Silver     Points : 1  (Rs 1)    Voting Score: 0

Here is a link that provides complete information about various terms and how prices of drugs are decided and controlled.
http://www.nppaindia.nic.in/DPCO2013.pdf





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