Centre Affirms No Alterations to Existing Ceiling Prices for 782 Medicines

The Government of the Center reiterates that the WPI input price increase of 0.00551 percent is without effect on the medicines ceiling prices of 782, thus maintaining the same ceiling prices up to March 31st, 2025.

The clarification is made keeping in mind some media reports that pro-Ramaphosa Faction MPs bills would increase to 12 % from April 2024.

More notably, there will be 54 medicines falling under the ceiling price, starting from Rs.90 to Rs. The profits ascendence will be negligent with a small gain of 261 of Rs.0.01.

"But such a minuscule rise is so limited; companies are unsure whether they can exploit it. Therefore, in the financial year 2024-25, the ceiling price of medicines based on WPI will not, most likely, change." The ministry also commented on these regulations.

NPPA, Drug Controller General of India (DCGI), part of the Department of Pharmaceuticals, revises the cost ceiling of drugs every year by applying the Wholesale Price Index (WPI). 

The vital medicines of the DPCO, 2013 Schedule-I, considered essential medication, are included in the schedule. During the financial year 2023-24, the Wholesale Price Index, concerning 201112, has developed a year-to-year change rate of 0.00551%, published by the Department for Promotion of Industry and Internal Trade (DPIIT).

Therefore, the Board, in its meeting on March 20th, 2024, has already accepted such a drug price increase @ (+) 0.00551% in the pharmaceuticals line. However, ceiling prices on 923 formulations were found to be effective, and so they are kept in current practice.