Prices of 800 essential medicines set to rise from April 1, traders raise concerns
In another blow to common man, essential, life-saving medicines are yet to get costlier from April 1.
The National Pharmaceutical Pricing Authority of India had earlier announced a 10.7 per cent hike in the Wholesale Price Index (WPI) for the calendar year 2021 over the corresponding period in 2020.
With this hike, the cost of about 800 scheduled medicines on the National List of Essential Medicines will increase by 10.7 per cent since the beginning of the next financial year.
The NPPA notice said, “Based on the WPI data provided by the office of the Economic Advisor, Ministry of Commerce and Industry, the annual change in WPI works out as 10.76607% during the calendar year 2021 over the corresponding period in 2020”.
Which medicines are likely to witness price hike?
As per NPPA’s order, the price of medicines that are used to treat fever, heart diseases, infections, skin diseases, high blood pressure and anaemia will be increased from April 1. These include medicines like Paracetamol, Phenobarbitone, Phenytoin Sodium, Azithromycin, Ciprofloxacin Hydrochloride and Metronidazole.
Why are the prices of medicines increasing?
Speaking to a leading news outlet Associate Director at India Ratings & Research – Krishnanath Munde said that Indian pharmaceutical industry has been struggling with the rising cost of inputs that come from China. These include freight and packaging material. The transportation costs have also increased amidst the pandemic.
Indian pharma industry gets about 70 per cent of its bulk drug raw material from China. Due to supply cuts, the industry is now facing cost pressures.
The rise in price of medicines has become a major cause of concern for traders. According to Delhi Drugs Trader Association secretary Ashish Grover, “Already, medicines are expensive and that too, 10% price hike in medicine from 1 April will directly impact consumers. We are wholesalers, and if we get the medicines at higher prices, retailers will ultimately sell the medicines at a high price. Chemists will not be able to give a discount to the customer on the purchase.”