If you or any of your loved ones take medicines regularly, then this news can surely bother you! The National Pharmaceutical Pricing Authority (NPPA) has approved a 1.74 percent increase in the prices of essential medicines in the country from April 1. This increase includes 906 medicines, including 80 new medicines. These medicines also include medicines used in common diseases like diabetes, fever, and allergies.
However, this increase is less than the last two years, where there was a 12 percent increase in 2023 and 10 percent in 2022. Still, this increase is going to put another financial burden on the pocket of the common man, especially for those who are already struggling with health-related expenses. So let’s know the reason behind this increase and how it will affect you.
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Why did the prices of medicines increase
Let us tell you that the main reason for this increase in the prices of medicines is attributed to the rising cost of raw materials. Pharmaceutical companies say that the prices of components or raw materials used in making medicines have been increasing continuously for some time, due to which their production cost also increased. For this reason, companies were demanding a price hike for a long time, so that they could compensate for their increased cost.
Increase based on Wholesale Price Index (WPI)
According to NPPA, this revision in the prices of medicines has been done due to rising inflation. The government reviews the prices of essential medicines every year and fixes the prices based on the increase in Wholesale Price Index (WPI). This time also, keeping in mind the increase in WPI, this slight increase in the prices of medicines has been done.
The penalty will be imposed for charging more than MRP
NPPA has made it clear that any manufacturer who does not follow the maximum prescribed price (Maximum Retail Price – MRP) will have to deposit a penalty with interest on the additional amount charged under the provisions of the Drugs Prices Control Order (DPCO) 2013.
Further, retailers and dealers have been strictly instructed to display the new price list provided by the manufacturer at their business place, so that consumers can easily get information about the new prices and any kind of black marketing or overcharging can be prevented.
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