Image

NPPA: India’s Drug Price Regulator – Functions, Powers and Recent Actions

Jun 15, 2026

Overview

The National Pharmaceutical Pricing Authority (NPPA) is India’s independent drug price regulator, established in 1997. It ensures availability and affordability of essential medicines. In June 2026, NPPA raised ceiling prices of two key cancer drugs by 50% to tackle shortages caused by soaring raw material costs, invoking special public interest provisions.

What is NPPA?

The  National Pharmaceutical Pricing Authority (NPPA)  is India’s independent drug price regulator. It was established on  29 August 1997  by a Government of India resolution. NPPA works as an attached office of the  Department of Pharmaceuticals , under the  Ministry of Chemicals and Fertilizers . Its main job is to fix and revise the prices of drugs. It also ensures that medicines are available, accessible, and affordable for all citizens. NPPA operates under the  Drugs (Prices Control) Order (DPCO)  , which is issued under the  Essential Commodities Act, 1955 .

NPPA Latest News (June 2026): 50% Price Hike for Cancer Drugs

On 11 June 2026, NPPA took a significant decision. It raised the ceiling rates for two platinum‑based cancer drugs –  cisplatin  and  carboplatin  – by  50% . The ceiling price for cisplatin increased from  ₹7.26 per ml to ₹10.89 per ml . For carboplatin, the price went up from  ₹60.49 per ml to ₹90.74 per ml  (excluding taxes).

This decision came after a sharp rise in raw material costs. These drugs are made using platinum, whose price more than doubled due to supply disruptions from South Africa and the West Asia conflict. Several manufacturers had stopped production because it was no longer viable at the old prices. Hospitals, especially government-run ones, faced severe shortages of these life-saving medicines.

NPPA invoked its  special powers under Paragraph 19 of the DPCO, 2013 . This provision allows the regulator to revise drug prices in  public interest  and in extraordinary circumstances. The price hike is a  one-time revision  and will be reviewed after six months. The regulator also increased the price of anti‑tetanus immunoglobulin by 50% following a petition from Serum Institute of India.

History and Establishment of NPPA

The idea of a drug price regulator emerged from the  Drug Policy modifications in 1994 . A Cabinet committee reviewed the policy and recommended setting up an independent body. Following this, NPPA was formally constituted on  29 August 1997  through a Government resolution.

NPPA was created because drug prices in India were unregulated for many essential medicines. Many people could not afford life-saving drugs. The government wanted a dedicated authority to fix prices, monitor availability, and prevent overcharging. Over the years, NPPA has expanded its reach through  Price Monitoring and Resource Units (PMRUs)  in 32 States and Union Territories.

Key Functions of NPPA

NPPA performs many important functions. Here are the main ones:

  1. Fixing and revising drug prices  under the DPCO. It sets both ceiling prices (uniform nationwide) and retail prices for new drugs.

  2. Enforcing the provisions of DPCO . No manufacturer, importer, or marketer can sell a scheduled drug above the price fixed by NPPA.

  3. Monitoring availability of drugs . NPPA identifies shortages and takes steps to ensure supply.

  4. Collecting and maintaining data  on production, exports, imports, market share, and profitability of drug companies.

  5. Dealing with legal matters  arising from its decisions.

  6. Advising the Central Government  on changes or revisions in drug policy.

  7. Assisting the government  in parliamentary matters related to drug pricing.

The Drugs (Prices Control) Order (DPCO)

The DPCO is the main legal instrument for drug price regulation in India. The current version is  DPCO, 2013 . It is issued under  Section 3 of the Essential Commodities Act, 1955 . Drugs are declared as essential commodities because they are vital for public health.

Under DPCO, NPPA fixes  ceiling prices  for all drugs listed in  Schedule I . This schedule contains medicines from the  National List of Essential Medicines (NLEM)  . Currently, NPPA has fixed ceiling prices for  930 scheduled formulations , including  131 anti-cancer ,  11 anti-diabetic , and  66 cardiovascular drugs . All manufacturers must sell these drugs within the ceiling price.

DPCO also gives NPPA the power to regulate prices of  non-scheduled drugs  if needed in public interest. For example, in February 2019, NPPA capped the trade margins of  42 non-scheduled anti-cancer drugs , which led to price reductions of up to 90% for 526 brands.

NPPA and Cancer Drug Pricing

Cancer treatment is very expensive. Many patients cannot afford the high costs. NPPA has taken several steps to make cancer drugs affordable:

  • It has fixed ceiling prices for  131 anti-cancer formulations  under Schedule I of DPCO.

  • It has capped trade margins for  42 non-scheduled anti-cancer drugs , saving patients about ₹984 crore annually.

  • It fixes retail prices for new anti-cancer drugs as defined under DPCO. As of March 2026, NPPA had fixed retail prices for  58 anti-cancer drugs .

The recent 50% price hike for cisplatin and carboplatin was an exception. NPPa allowed it only because the drugs were facing severe shortages. Without the price increase, manufacturers would have stopped production entirely.

NPPA and Non-Scheduled Drugs

Non‑scheduled drugs are not directly under price control. However, their prices are not completely free. Under DPCO, 2013, manufacturers cannot increase the MRP of any non‑scheduled drug by more than  10% in any 12‑month period  without prior approval. NPPa monitors these increases and can intervene if they are excessive.

For example, in 2025, NPPA capped the MRP of  22 diabetic  and  84 cardiovascular non‑scheduled medicines , saving patients about ₹350 crore annually.

Initiatives and Platforms of NPPA

NPPA has launched several initiatives to help consumers:

  • Pharma Sahi Dam App : Provides real‑time information on the MRP of scheduled drugs as fixed by NPPA.

  • Pharma Jan Samadhan : A platform for registering public grievances about drug pricing.

  • Integrated Pharmaceutical Data Base Management System (IPDMS 2.0)  : A digital platform to manage, regulate, and monitor prices of pharmaceutical products and medical devices.

  • Price Monitoring and Resource Units (PMRUs)  : Established in 32 States/UTs to monitor drug prices at the local level.

Legal Basis and Compliance

NPPA derives its powers from:

  • Essential Commodities Act, 1955  (Section 3) – under which DPCO is issued.

  • Drugs (Prices Control) Order, 2013  – the main operational framework.

Compliance is monitored through:

  • PMRUs and State Drugs Controllers.

  • Market data collected by NPPA.

  • Grievances received through Pharma Jan Samadhan and other channels.

Non‑compliance can lead to:

  • Financial penalties.

  • Directions to reduce prices.

  • Legal action, including prosecution.

A Human Touch: Why NPPA Matters to You

Every Indian buys medicines at some point. If you or a family member needs treatment for a serious illness like cancer or diabetes, the cost of medicines can be overwhelming. NPPA works to keep these prices under control. When a drug is listed in the National List of Essential Medicines, NPPA ensures it remains affordable for ordinary people. Even when it allows a price hike (like for cisplatin and carboplatin), it does so only to prevent a complete shortage. The regulator constantly tries to balance the interests of patients and the pharmaceutical industry.

Exam-Focused Points

  • NPPA established:  29 August 1997.

  • Parent department:  Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers.

  • Legal basis for price control:  Essential Commodities Act, 1955 (Section 3).

  • Main operational order:  Drugs (Prices Control) Order, 2013 (DPCO, 2013).

  • NPPA fixes two types of prices:  Ceiling prices (uniform nationwide) and retail prices (for new

Month: 

Category: