Why are the prices of medicines increasing?

Sowmiya Sriram
Why are the prices of medicines increasing?
The parliament standing committee has ordered the National Pharmaceutical Pricing Authority to explain its approval of a 50 percent price hike on 11 medicines last October. The National Pharmaceutical Pricing Authority, or NPPA, in an order issued on october 15, has allowed a 50 percent increase in the prices of 11 medicines. It said that it had accepted the demand of pharmaceutical companies seeking to increase the prices in line with the increasing production costs over the years. The Parliamentary Standing Committee on Chemicals and Fertilizers has expressed concern over this, saying that the increase in the price of medicines is affecting the poor. Therefore, it has asked the Commission to provide a detailed explanation on this.
It is noteworthy that the Commission had announced the price hike to ensure the uninterrupted availability of 11 medicines used to treat asthma, glaucoma, thalassemia, tuberculosis, and mental disorders. The price increase aimed to ensure the continued availability of these 11 drugs, which are primarily used as first-line treatments for conditions such as asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders, the report further said. Additionally, the Department of Revenue had earlier issued a notification reducing the GST on these medicines from 12 percent to 5 percent, effective october 10, 2024. “Accordingly, there should be a reduction in the MRP of these drugs in the market, and the benefits of reduced taxes and duties should be passed on to the consumers,’’ the release further noted.
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