From April 1st onwards, prices of essential medicines, encompassing painkillers, antibiotics, and anti-infectives, are poised to undergo a slight increase. This incremental adjustment aligns with the annual alteration in the wholesale price index (WPI), with the government permitting a .0055% rise in the prices of drugs listed under the National List of Essential Medicines (NLEM).
This year's adjustment marks a stark contrast to the substantial annual increments of 12% and 10% witnessed in previous years, providing a modest relief for the pharmaceutical industry. The adjusted prices will affect over 800 drugs listed on the National List of Essential Medicines, with alterations in prices for scheduled drugs permitted once annually.
Included in the roster of essential medicines are crucial drugs such as paracetamol, azithromycin antibiotics for bacterial infections, anti-anaemia medications, vitamins, minerals, as well as certain medications utilized in the treatment of moderately to severely ill Covid-19 patients and steroids.
Industry stakeholders have long been advocating for significant price hikes to offset rising input costs. Over recent years, key active pharmaceutical ingredient prices have surged by anywhere from 15% to 130%, with notable increases observed in paracetamol prices soaring by 130% and excipients by 18-262%.
Essential solvents like glycerine and propylene glycol, integral to various liquid preparations including syrups, oral drops, and sterile preparations, have experienced price hikes of 263% and 83%, respectively. Additionally, intermediate prices have surged by 11% to 175%, with Penicillin G witnessing a steep 175% rise.
Previously, a lobby group representing over 1,000 Indian drug manufacturers urged the government to implement an immediate 10% increase in prices for all scheduled formulations, along with a 20% rise for non-scheduled drugs.
Nevertheless, an executive affiliated with a non-governmental organization (NGO) expressed relief following the announcement, stating that the moderate increase serves to stabilize price controls. This move comes as a welcome respite after two consecutive major price hikes, contributing to the continued affordability of essential drugs.
