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The Department-related Parliamentary Standing Committee on Chemicals and Fertilisers has recommended to the Department of Pharmaceuticals (DoP) and the drugs pricing regulator to increase participation from the general public in the process for retail price fixation of new drugs.
The Panel, in a latest report reviewing the role, functions, and duties of the National Pharmaceutical Pricing Authority (NPPA) with specific reference to increase in prices of medicines in the country for three years till November 2025, observed that there was no participation of patients, consumer groups or the general public in the process of fixation of retail prices of new drugs under the paragraph 2(1)(u) of Drugs Prices Control Order (DPCO), 2013.
It noted that regarding the number of comments or representations received by NPPA on draft working sheets of the retail price of new drugs proposed during the 10-working days window in the last three years and effect of these comments and representations in the final price notification, the Department submitted that during the period from December 1, 2022 to November 30, 2025, a total of 1426 draft working sheets were uploaded on website for 10 working days seeking comments.
Around 30 comments or representations were received by NPPA on the same, out of which 29 representations were received from pharmaceutical companies and one representation from industry association. This led to revision in calculations of the draft worksheet in respect of 6 cases.
"The Committee, from the data furnished by the Department, observe that the process for fixation of retail price of ‘new drugs’ undertaken by NPPA has not elicited participation of patients, consumer groups or the general public at all during the period from 01.12.2022 to 30.11.2025," said the Panel headed by Member of Parliament Kirti Azad Jha, in its 33rd report.
"The Committee, therefore, recommend that the Department of Pharmaceuticals and NPPA undertake steps to increase participation of the general public in the process for fixation of retail price of ‘new drugs’. The Committee may be apprised of the action taken in the matter," added the Panel.
NPPA fixes the retail price of new drugs based on market data as per the formulae provided in the DPCO, 2013, and as per paragraph 2(1)(u) of DPCO, 2013, the expression ‘new drug’ means a formulation launched by an existing manufacturer of a drug of specified dosages and strengths as listed in NLEM by combining such drug with another drug that may or may not be listed in NLEM, or a formulation launched by changing the strength or dosages or both of the same drug of specified dosages and strengths as listed in the NLEM.
Based on an application received from the manufacturer of a ‘new drug’, a draft working sheet of the retail price proposed is uploaded on the website of NPPA for 10 working days for information of the general public and to invite comments. The comments and representations received, if any, are examined and considered before the prices are notified.
Till October 23, 2025, NPPA has fixed approximately 3,570 retail prices of new drugs under DPCO, 2013, noted the Panel.
The Panel, during the preparation of the report, sought the DoP regarding the measures it has taken to ensure that the uploaded data on its website was accessible and intelligible to common stakeholders, including patients and smaller manufacturers, who might not have technical expertise.
The DoP responded that all draft working sheets relating to ceiling and retail price fixation are prominently displayed on the NPPA’s website for a period of ten working days. The draft working sheets are keenly watched by industry and other stakeholders.
"The same can be accessed by the general public and no special technical or legal expertise is required to access and comprehend the same. This approach protects the interest of the general public," it added.
Besides, all the price notifications are published in the official gazette and the NPPA also disseminates its pricing decisions through its website and social media platforms. Price Monitoring and Resource Units (PMRUs) in 32 States and Union Territories organise various campaigns to spread awareness and disseminate information among the general public. Pharma Sahi Daam is a mobile application launched and developed by NPPA where the composition, drug type and prices of around 98,000 SKUs of medicines are reflected, it added.
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