Trip to Chemist to Cost More from April 1, But Medicine Prices Already Up By 20%, Say 6 in 10 Consumers

Prices of close to 900 scheduled drugs across 27 therapies will be up by 12 percent from April 1. It is likely to hurt consumers, most of whom are saying medicine prices have already increased by 20 percent over the past year.

A survey showed that six out of 10 consumers experienced a 20 percent hike in medicine prices in the last 12 months, and prices of specialised medicines for diabetes, blood pressure, arthritis, cancer had increased the most.

Conducted by community social media platform LocalCircles, the survey showed that 56 percent of consumers indicated that the MRP of commonly used medicines had risen. It also showed that a majority of consumers want the central government to cap trade margins on medicines between 50 and 100 percent.

As has been the norm, the government is all set to allow drug manufacturers to increase ceiling prices of around 900 scheduled drugs (medicines) on April 1, in line with the change in the annual wholesale price index (WPI). On March 27, the National Pharmaceutical Pricing Authority (NPPA) said the annual change in WPI in 2022, as notified by the Centre, is 12.12 percent.

The drugs price regulator said prices of 384 molecules, which correspond to around 900 formulations across 27 therapies, are expected to go up by over 12 percent. This is the second consecutive year when the hike is more than that allowed for non-scheduled drugs.

Scheduled drugs, including painkillers, anti-infectives, cardiac drugs and antibiotics, are part of the ‘national list of essential medicines’. Their prices are regulated by the NPPA. The rest – non-scheduled drugs outside price control – are allowed an annual increase of 10 percent every year.

For 2021, the subsequent price hike for drugs was over 10 percent in line with change in WPI. Global events, including the Covid pandemic and Russia-Ukraine war, has led to disruption in supplies of raw material or active pharmaceutical ingredients (API) for essential drugs; also causing prices to increase.

Even as the supply chain and logistics situation has improved, increasing price of raw materials remains a concern for the pharmaceutical sector while consumers are forced to pay a higher price for their dose of medicines.

Asked how prices of commonly used medicines had changed over the past year or so, 58 percent survey respondents indicated that medicine prices have changed in the last 12 months while 31 percent said they have risen above 20 percent.

To a question on the type of medicines that had become expensive, a majority of consumers said prices of specialised medicines for diabetes, blood pressure, arthritis, cancer have risen the most.

Data shows that 5 percent of the respondents had to pay more for general medicines for fever, cough, headache, eye drops, vitamins while 35 percent indicated specialised medicines. They also said it was not just allopathic medicines that were costlier but even ayurvedic as well as homeopathic. It should be noted that since 2020, medicines in the general category have witnessed a massive surge in demand due to Covid.

Many consumers also questioned as to why, despite a hike of 10 percent that was approved for essential medicines, MRPs have gone up north of 20 percent.

A large majority of Indian households are affected by high inflation, rising cost of living and limited or no growth in household earnings. Medicine prices have already increased in the last 12 months and consumers face another price hike of 12 percent on 900 formulations to be in effect from April 1. What is the way forward?

Many consumers have pointed at the large gap existing between medicine selling price and MRP. According to the survey, 76 percent of the consumers want the central government to cap the trade margin on medicines. Data shows that 21 percent want it to be capped at 100 percent of ex-factory price while 55 percent want it to be at 50 percent.

People feel that with a cap on trade margin, the MRPs will become more realistic and many consumers, who may be subject to overcharging at present, may end up paying a more reasonable price for medicines.

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