NEW DELHI: Due to a significant increase in the wholesale price index, the costs of 384 critical medications and more than 1,000 formulations are expected to increase by more than 11%. (WPI). Consumers will have to pay extra for common and necessary medications, such as painkillers, antibiotics, and anti-infection medications, starting on April 1 due to the price increase.
The National List of Essential Medicines' (NLEM) annual price increases are based on the WPI. The National Pharmaceutical Pricing Authority stated in a message dated March 25 that the yearly adjustment in WPI for the calendar year 2022 was 12.12%. Last year, the wholesale price index changed by 10.7%, according to the National Pharmaceutical Pricing Authority (NPPA) (WPI).
According to the Pharmaceuticals (Price Control) Order, 2013 (DPCO), the NPPA publishes an update to the Wholesale Price Index (WPI) each year. According to a senior official in the Health Ministry, the price increase was implemented to guarantee that there wouldn't be a shortage of medications on the market and that both producers and customers would profit. Manufacturers won't sell at a loss, therefore we must guarantee a consistent supply of necessary medications for the nation. "In addition, a regulated rise in prices is permitted," he added.
The insider also said that in the past, even when a 10% increase was permitted, several manufacturers maintained the rate below 5% due to market forces. "We anticipate a similar pattern with this walk as well," he continued.
All India Drug Action Network co-convener Malini Aisola expressed worry that the new WPI would cause increases in the ceiling prices under the DPCO provisions for fixing prices for scheduled formulations. The organisation works to promote accessible healthcare.
"This is the second year in a row that the WPI is higher than the annual allowable price rise for non-scheduled formulations (10%). The increase is the largest since the DPCO of 2013 went into effect. The government should step in to protect the affordability of these medicines since such a sharp increase will undermine the price controls currently in place for vital medicines. The goal of fixing the price of vital drugs is being undermined by such steep price rises back-to-back," she continued.
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