Essential Drug Availability and Pricing: NPPA Actions and PMBJP
UPSC / SSC current affairs note · Economy
Why in news
The PIB release highlights recent NPPA actions to address drug shortages and price violations, including a 50% price hike for four critical drugs. It also details measures under PMBJP to ensure affordable generic medicines, relevant for current affairs and policy discussions.
Background
The National Pharmaceutical Pricing Authority (NPPA) operates under the Department of Pharmaceuticals to regulate drug prices and ensure availability. The Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) was launched to provide quality generic medicines at affordable prices through dedicated Jan Aushadhi Kendras.
Key facts
NPPA monitors availability of all drugs, including generics, and identifies shortages.
In the past year, NPPA allowed a one-time 50% price increase for four drugs: Carboplatin injection 10 mg/ml, Cisplatin injection 1 mg/ml, Anti-tetanus immunoglobulin 250 IU, and 500 IU.
NPPA monitors compliance with DPCO, 2013 and takes action for overcharging and violations.
As of 31 March 2026, NPPA initiated action in 2737 cases of overcharging.
PMBJP has over 20,000 dedicated Jan Aushadhi Kendras (JAKs) providing generic drugs at 50-80% lower prices than branded ones.
Since September 2024, JAKs are encouraged to stock 200 commonly used drugs (top 100 selling and 100 fast-moving) with monthly incentives for owners.
An IT-enabled supply chain system connects 5 warehouses and 42 distributors; PMBI monitors 400 fast-moving products regularly.
Ayushman Bharat PM-JAY provides health insurance cover of up to ₹5 lakh per family per year for hospitalization, including drug costs.
Under National Health Mission's Free Drugs Service, essential drugs are provided at public health facilities as per IPHS standards.
Prelims pointers
- NPPA: National Pharmaceutical Pricing Authority, under Department of Pharmaceuticals.
- DPCO 2013: Drug Price Control Order, regulates prices of essential drugs.
- PMBJP: Pradhan Mantri Bharatiya Janaushadhi Pariyojana, launched to provide affordable generics.
- PMBI: Pharmaceuticals and Medical Devices Bureau of India, implementing agency for PMBJP.
- JAK: Jan Aushadhi Kendra, outlets for generic medicines.
- AB-PMJAY: Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, health insurance scheme.
- IPHS: Indian Public Health Standards, for public health facilities.
- Key drugs: Carboplatin, Cisplatin, Anti-tetanus immunoglobulin.
Mains angles
- GS2: Government policies and interventions for health sector, issues of drug pricing and availability.
- GS3: Public health, pharmaceutical industry, regulatory mechanisms.
- Discuss the role of NPPA in ensuring drug affordability and availability in India.
- Critically examine the effectiveness of PMBJP in making generic medicines accessible to the poor.