NPPA fixes retail prices of 3,845 new drugs to curb overpricing
Synopsis
The NPPA has fixed retail prices for 3,845 new drugs and ceiling prices for 935 scheduled formulations in a single regulatory cycle ending 23 July 2026 — the government's most visible use of DPCO powers this year. With 388 essential medicines on the NLEM and a 10% MRP-hike cap on non-scheduled drugs, the scale of this exercise underlines how actively the Centre is deploying pricing controls to keep medicines within reach for millions of patients.
Key Takeaways
The NPPA fixed retail prices for 3,845 new medicines and ceiling prices for 935 scheduled drug formulations as of 23 July 2026 .
Drug pricing is governed by the Drugs (Prices Control) Order, 2013 (DPCO) , based on the NLEM , which currently lists 388 medicines .
Manufacturers of non-scheduled formulations cannot raise MRP by more than 10% in any 12-month period.
The NPPA monitors both scheduled and non-scheduled drug prices and acts against companies found overcharging consumers.
Government schemes including Janaushadhi Pariyojana , AB-PMJAY , and the Free Drugs Service Initiative supplement pricing controls to improve medicine access.
The National Pharmaceutical Pricing Authority (NPPA) has fixed ceiling prices for 935 scheduled drug formulations and retail prices for 3,845 new medicines as of 23 July 2026, the government informed Parliament on Tuesday, 28 July 2026. The move is aimed at keeping essential medicines within affordable reach for patients across the country.
How Drug Pricing Is Regulated
The NPPA fixes ceiling prices for drugs listed under Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO), which draws from the National List of Essential Medicines (NLEM) published by the Ministry of Health and Family Welfare. The NLEM currently covers 388 medicines. For drugs outside the scheduled list, manufacturers are barred from raising the maximum retail price (MRP) by more than 10 per cent of the MRP in the preceding 12 months.
In extraordinary circumstances, the NPPA also holds the authority to fix prices of any drug in the public interest, Minister of State for Chemicals and Fertilisers Anupriya Patel stated in a written reply to a question in the Rajya Sabha.
Overpricing Checks and Ongoing Monitoring
To prevent overpricing, the DPCO 2013 mandates that every manufacturer print the MRP on the label of the container. No seller is permitted to charge a consumer more than the price indicated on the current price list or the label — whichever is lower.
The NPPA monitors prices of both scheduled and non-scheduled formulations on a continuous basis and initiates action against companies found overcharging consumers. References are drawn from Price Monitoring and Resource Units set up in states, State Drugs Controllers, open-market sample purchases, market database reports, and complaints lodged through grievance redress channels, the minister noted.
Government Schemes Expanding Medicine Access
Minister Patel also highlighted several government initiatives designed to improve access to affordable medicines for ordinary citizens. These include the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), and the Free Drugs Service Initiative under the National Health Mission.
What This Means for Patients
The pricing interventions cover a broad range of formulations, signalling that the Centre is actively using its regulatory powers to shield patients from cost escalation. Notably, the government's ability to invoke DPCO provisions in extraordinary circumstances provides a statutory safety net beyond routine scheduled-drug controls. With medicine affordability remaining a persistent concern for millions of low- and middle-income households, the scale of this exercise — 3,845 new drug prices fixed in a single cycle — reflects the breadth of the regulatory mandate in play.
Point of View
845 drugs in a single cycle is administratively significant, but the harder question is enforcement. The NPPA's monitoring machinery — relying on state-level units, open-market sampling, and grievance complaints — is reactive by design, not proactive. Overcharging cases typically surface after patients have already paid inflated prices. The 10% annual MRP-hike cap on non-scheduled formulations also leaves room for incremental price creep that compounds over years. The government's parallel push through Janaushadhi and AB-PMJAY addresses access, but price discipline at the retail level remains contingent on a monitoring system that is stretched thin across a market of tens of thousands of formulations.
NationPress
28 Jul 2026
Frequently Asked Questions
How many drug prices has the NPPA fixed as of July 2026?
The NPPA has fixed ceiling prices for 935 scheduled drug formulations and retail prices for 3,845 new medicines as of 23 July 2026. These actions are taken under the Drugs (Prices Control) Order, 2013 to keep essential medicines affordable.
What is the DPCO 2013 and how does it regulate drug prices?
The Drugs (Prices Control) Order, 2013 (DPCO) is the primary legal framework governing medicine pricing in India. It empowers the NPPA to fix ceiling prices for drugs on the National List of Essential Medicines and restricts non-scheduled drug manufacturers from raising MRP by more than 10% in any 12-month period.
What is the National List of Essential Medicines (NLEM)?
The NLEM is a list of medicines identified as essential by the Ministry of Health and Family Welfare. It currently contains 388 medicines, and drugs on this list are subject to ceiling price controls by the NPPA under Schedule-I of the DPCO 2013.
How does the government prevent drug overpricing at the retail level?
The DPCO 2013 requires manufacturers to print the MRP on every drug container, and no seller can charge above that price. The NPPA continuously monitors prices using inputs from state Price Monitoring and Resource Units, State Drugs Controllers, market samples, and consumer complaints, and takes action against overcharging companies.
Which government schemes improve access to affordable medicines in India?
The government runs the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, which provides generic medicines at low prices; the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) for health coverage; and the Free Drugs Service Initiative under the National Health Mission to supply medicines at no cost through public health facilities.
