The National Pharmaceutical Pricing Authority (NPPA) was established in 1997 by the Government of India under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
Its main purpose is to control pharmaceutical drug prices, ensure the availability of essential medicines at affordable prices, monitor overcharging by pharmaceutical companies, and enforce the Drugs Price Control Order (DPCO).
Need for NPPA
Before NPPA, India's pharmaceutical market was largely unregulated, leading to high drug costs.
NPPA was created to regulate prices and ensure affordability without compromising quality, balancing the interests of both consumers and manufacturers.
Objectives of NPPA
Price Regulation: Fix and regulate prices of essential medicines listed under the National List of Essential Medicines (NLEM), setting ceiling prices to prevent overpricing.
Monitoring Prices: Monitor non-scheduled drug prices and prevent unjustified price hikes.
Enforcement of DPCO: Effectively implement the Drugs Price Control Order (DPCO) and take legal action against violators.
Availability of Medicines: Ensure the continuous supply of essential drugs to consumers.
Collection of Market Data: Gather data on drug production, sales, pricing, and availability.
Consumer Awareness: Promote drug pricing information, ceilings, and consumer rights through public programs and its website.