Due to a sharp rise in the Wholesale Price Index (WPI), prices of 384 essential drugs and over 1,000 formulations will surge by over 11% starting April 1. This hike will impact the prices of routine and essential drugs such as painkillers, anti-infection drugs, cardiac drugs, and antibiotics, and consumers will have to pay more for these medicines. The National Pharmaceutical Pricing Authority, in its communication dated March 25, stated that the WPI had increased by 12.12% in the calendar year 2022. The NPPA announces the change in WPI every year in accordance with the Drugs (Price Control) Order, 2013 or DPCO, 2013. Last year, the NPPA announced a 10.7% change in the Wholesale Price Index (WPI).
According to a senior Health Ministry official, the hike in drug prices is necessary to ensure that there is a steady supply of essential medicines in the market, while manufacturers and consumers both benefit. By allowing prices to rise in a controlled manner, manufacturers will not sell at a loss, which is essential to ensure a steady supply of essential medicines in the country. The official stated that during the previous 10% hike, many manufacturers kept the rate under 5% due to market forces, and they are expecting a similar trend with this hike as well.
However, Malini Aisola, co-convener of the All India Drug Action Network, a group that works to promote affordable healthcare, expressed concern that the new WPI would trigger increases in the ceiling prices under the DPCO provisions for fixing prices for scheduled formulations. She added that the hike is the highest seen since the DPCO 2013 came into force and the second year in a row that the WPI is higher than the annual permitted price hike for non-scheduled formulations (10%). She also expressed concern that such a drastic hike would distort the price control in place on essential medicines and urged the government to intervene to maintain the affordability of these drugs. She stated that high back-to-back price increases are undermining the purpose of price fixation of essential medicines.
