The cost of essential medicines, including those used for treating cancer, diabetes, heart ailments, and infections, is set to rise by 1.7%, according to sources in the government. This price adjustment will impact drugs under government regulation, Business Today has reported.

Rajiv Singhal, General Secretary of the All India Organisation of Chemists and Druggists (AIOCD), stated that the increase would help the pharmaceutical sector manage rising costs of raw materials and other operational expenses. However, he noted that it would take two to three months for the revised prices to reflect in the market, as medicine stocks generally last for about 90 days.

A study conducted by the Parliamentary Standing Committee on Chemicals and Fertilisers highlighted that several pharmaceutical companies have frequently exceeded the permissible price limits for medicines. The National Pharmaceutical Pricing Authority (NPPA), which regulates drug pricing in India, has recorded 307 instances where pharmaceutical firms violated pricing norms.

The NPPA establishes price ceilings for medicines under the Drug (Prices Control) Order (DPCO), 2013, ensuring that manufacturers and sellers do not charge above the fixed rate, inclusive of the applicable Goods and Services Tax (GST).

Earlier this month, the Ministry of Chemicals and Fertilisers reported that the price cap on medicines listed under the National List of Essential Medicines, 2022, had resulted in an estimated annual savings of ₹3,788 crore for patients.