drugs).
Ceiling prices apply to: Drugs listed in Schedule‑I (based on National List of Essential Medicines).
As of 2026: Ceiling prices fixed for 930 scheduled formulations, including 131 anti-cancer drugs.
Non‑scheduled drugs: MRP cannot increase by more than 10% in 12 months without approval.
Recent action (June 2026): Raised ceiling prices of cisplatin and carboplatin by 50% under Para 19 of DPCO (public interest).
NPPA also monitors: Availability of drugs, identifies shortages, collects market data.
Consumer platforms: Pharma Sahi Dam app, Pharma Jan Samadhan grievance portal.
Price Monitoring and Resource Units (PMRUs): Set up in 32 States/UTs for local monitoring.
Frequently Asked Questions (FAQ)
Q1: What is the National Pharmaceutical Pricing Authority (NPPA)?
A: NPPA is India’s independent drug price regulator, established in 1997. It fixes and revises prices of essential medicines, ensures their availability, and monitors compliance under the Drugs (Prices Control) Order.
Q2: Under which law does NPPA derive its power to fix drug prices?
A: NPPA derives its power from the Drugs (Prices Control) Order , which is issued under Section 3 of the Essential Commodities Act, 1955 . Drugs are declared as essential commodities because they are vital for public health.
Q3: What was the major decision taken by NPPA in June 2026?
A: In June 2026, NPPA raised the ceiling prices of two key cancer drugs – cisplatin and carboplatin – by 50% to address severe shortages caused by a surge in raw material (platinum) costs. The hike was allowed under special public interest provisions.
Q4: What is the difference between ceiling price and retail price fixed by NPPA?
A: Ceiling price is a single maximum selling price for a scheduled drug, applicable uniformly across the country. Retail price is fixed for “new drugs” (e.g., new combinations or strengths) and applies only to the applicant manufacturer.
Q5: Does NPPA control prices of all drugs in India?
A: No. Only drugs listed in Schedule‑I of DPCO (based on the National List of Essential Medicines) are under direct price control. However, NPPA also monitors prices of non‑scheduled drugs and can intervene if manufacturers increase MRP by more than 10% in 12 months.
Q6: What happens if a company sells a scheduled drug above the ceiling price?
A: Selling above the ceiling price is a violation of DPCO. NPPA can impose financial penalties, direct price reductions, take legal action, or even prosecute the offender.