Notwithstanding the persistent demands by the manufacturers in the wake of increased input costs, the centre is unlikely to review immediately the present 10 per cent ceiling limit on the yearly permissible hike of prices of non-scheduled drugs.

The pharmaceutical department is of the view that the issue of revising the limit from 10 per cent should be left with the National Pharmaceutical Pricing Authority (NPPA) and is unwilling to interfere into the affairs of the independent agency at present.

Going by the survey results and assessments, the NPPA on the other hand feels that despite vociferous cries by the companies even 50 per cent of manufacturers have not availed the existing option to hike the prices of non-scheduled drugs upto 10 per cent per year. Sources said the agency feels that the manufacturers should better utilise the provision to hike drug prices as per the permitted limit and once most of them do it and is still finding it tough to sustain, it would consider the revision of the limit. There have been reports in a section of the media that the government would review and increase the limit. However, sources close to the agency denied it as mere speculation.

The NPPA had revised the guidelines for monitoring of prices of non-scheduled formulations, making the 10 per cent ceiling in prices effective from April 1, 2007. Though the guidelines were issued first to be made effective from January 1, 2007, later it gave three more months to the industry. Till then, the permitted ceiling limit was 20 per cent annually and the manufacturers and associations have been demanding to restore 20 per cent ceiling on the grounds of increased prices of raw materials, inflation and shortage of ingredients. But on the positive side, the NPPA had recently hiked the prices of a number of formulation packs and revised the guidelines for packaging at higher levels to help the manufacturers to pass on the burden to the customers.

The monitoring of prices of non-scheduled formulations is done on the bases of regular data from ORG IMS. Companies are short listed on the basis of the ORG data, where there is an increase in prices of a non-scheduled formulation by more than 10 per cent during a period of 12 months and the annual turnover of the formulation pack exceeds Rs 1 crore. The concerned manufacturer is asked to furnish reasons for such price increases or to bring down the prices voluntarily and to thereafter maintain the price level. Action is initiated against those who do not comply with the directions.