85% of Rs 8,526 crore overcharging demand unrecovered, NPPA faces 15 vacant posts

The Standing Committee on Chemicals and Fertilizers examined the role and functions of the National Pharmaceutical Pricing Authority (NPPA) to address rising medicine prices in India. This matters to citizens as it impacts the affordability and availability of essential drugs.

The report concerns the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA). It affects the general public, specifically patients purchasing medicines, as well as drug manufacturers, distributors, and retailers.

• The Committee recommended finalizing a permanent Trade Margin Rationalisation (TMR) framework within a defined timeline to curb arbitrary initial prices of non-scheduled drugs.
• The Committee recommended instituting a fast-track dispute resolution mechanism for non-litigated overcharging cases and setting up a dedicated legal cell within NPPA to handle long-pending court cases.
• The Committee recommended the Ministry examine the feasibility of reintroducing cost-based pricing through statutory amendments to detect price distortions caused by market monopolies.
• The Committee recommended incorporating hospital sales, Jan Aushadhi stores, trade generics, and e-commerce supplies into NPPA's data collection framework to reduce reliance on third-party data.
• The Committee recommended NPPA take steps to increase public awareness and stakeholder participation in price fixation, noting that only industry representatives submitted comments on draft price worksheets between 2022 and 2025.
• The Committee recommended filling existing vacancies through regular appointments and expediting approval for 59 additional posts to reduce reliance on contractual staff.

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