National Pharmaceutical Pricing Authority (NPPA)
- NPPA is nodal government regulatory agency that controls the prices of pharmaceutical drugs in India.
- It functions under the aegis of Union Ministry of Chemical and Fertiliser.
- It advices Union Government in matters relate to drug policies and pricing. Besides, it also renders advice to the Union Government on changes/ revisions in the drug policy.
Functions of National Pharmaceutical Pricing Authority:
- To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
- To deal with all legal matters arising out of the decisions of the Authority;
- To monitor the availability of drugs, identify shortages, if any, and to take remedial steps;
- To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations;
- To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals;
- To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government;
- To render advice to the Central Government on changes/ revisions in the drug policy;
- To render assistance to the Central Government in the parliamentary matters relating to the drug pricing.
What are essential medicines?
- Essential medicines are those that satisfy the priority health care needs of the country’s population.
- They are generally based on the country’s disease burden, priority health concerns, affordability concerns etc.
- In India National List of Essential Medicines (NLEM) formed in 2011 decides the essential medicines.
- The list is prepared by the Union Ministry of Health and Family Welfare.
- The NLEM is a dynamic list and is reviewed every 3 years to include or exclude drugs as relevant to the newest medical innovations and aligned to the current market competition