NPPA – National pharmaceutical Pricing Authority

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NPPA is an independent body under Department of Pharmaceuticals under the Union Ministry of Chemicals and Fertilizers.

It was set up in 1997.

Its functions are to:

  • fix/revise the controlled bulk drugs prices and formulations,
  • enforce prices and availability of the medicines under the Drugs (Prices Control) Order, 1995/2013
  • recover amounts overcharged by manufacturers for the controlled drugs from the consumers
  • monitor the prices of decontrolled drugs in order to keep them at reasonable levels.

The NPPA currently fixes prices of drugs placed in the National List of Essential Medicines (NLEM) under Schedule-I of the DPCO.

Medicines that are not under price control, manufacturers are allowed to increase the maximum retail price by 10% annually.

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