Drug Price Control Order, i.e. DPCO, is a government rule whose main aim is to make essential medicines affordable. Through this order, the Indian government fixes the maximum price of some selected medicines, so that companies do not sell them at an overly expensive price. This rule is implemented through NPPA (National Pharmaceutical Pricing Authority) which comes under the Ministry of Chemicals and Fertilizers.
The government decides the MRP (Maximum Retail Price) of all the medicines that come under DPCO. Pharma companies cannot sell these medicines for more than the fixed rate. If a company breaks the rules, it can be penalized or its product line can be investigated.
This step has been taken so that life-saving medicines such as antibiotics, blood pressure,
diabetes, cancer or TB medicines can be accessed easily and at affordable rates to the
common man. DPCO controls the market but at the same time ensures access to essential
healthcare for all. It guides the PCD companies in India to work in a fair system where public interest is equally important along with profit.
What is the full form of DPCO?
The full form of DPCO is Drug Price Control Order. This is a government regulation whose main purpose is to control the price of essential medicines. DPCO ensures that important and life-saving medicines are available to people at reasonable rates. The government decides the MRP of the medicines falling under this rule. This order is implemented through NPPA (National Pharmaceutical Pricing Authority) and protects public interest.
Reason Behind the Drug Price Control Order
The main reason for implementing the Drug Price Control Order (DPCO) was to control the
prices of essential medicines so that affordable and quality healthcare could be easily accessed by the common man. Some important reasons are given below:
1. High Prices of Medicine:
Many life saving and commonly used medicines had become so expensive that the middle class and poor families could not afford them. That is why the government introduced a price control system.
2. Public Health Protection:
Health is a basic right, and it was the aim of the government that no citizen should have to
abandon treatment due to lack of medicines or price.
3. Overpricing & Profiteering:
Some pharmaceutical companies were making excessive profits on essential drugs. DPCO put a stop to these unfair practices.
4. Uniform Pricing System:
DPCO has created a transparent and fair pricing model where every company has to maintain MRP within a limit.
5.Access to Healthcare for Everyone:
DPCO ensured that affordable medicines could reach timely even in rural areas along with
urban areas.
Essential Medicine:
Essential medicines are those that are necessary for basic healthcare, such as medicines used for fever, infection, diabetes, BP, or pain. Their demand is high and they should always be easily available and affordable. WHO and the government make a list of these, so that treatment can reach everyone.
Features That Define Essential Medicines:
1. For essential diseases:
These medicines are used in the treatment of common and serious diseases.
2. Effective and Safe:
These medicines are scientifically proven – they work and have minimal side effects.
3. High Quality:
Manufacturing and testing standards are followed so that patients get the best quality.
4. Should be affordable:
The price should be such that a common man can easily buy it.
5. Always Available:
Hospital, clinic or medical store – these medicines should be easily available everywhere.
6. WHO & Government Approved:
The list of essential medicines is decided by the World Health Organization and the Indian
government.
Government’s Role in Drug Affordability
1. Price Regulation:
The Government fixes the MRP of essential medicines through DPCO, so that common people can also afford them.
2. Stronger Supply Chain:
The supply chain is improved for timely delivery to rural and remote areas.
3. Public Awareness:
People are educated about cheap and effective medicines through campaigns.
4. Encouraging Generic Medicines:
Affordable healthcare can be made accessible to all by promoting the use of generic medicines.
Drug Price Control Order (DPCO) Amendments 2019 – Key Facts for IAS Exam
1. Formulation-Based Pricing Introduced:
This amendment fixes price control on the basis of formulation (salt/combination) of individual drugs, so that there is fair and balanced pricing.
2. More Focus on Essential Medicines:
The government has strengthened the list of essential medicines and focused more on their availability, so that people can get essential medicines at the right price.
3. Increased Role of NPPA:
The National Pharmaceutical Pricing Authority (NPPA) has been given more powers for price monitoring and regulation, especially when there is overpricing in the market.
4. Promoted Use of Low-Cost Generics:
The goal of the amendment was to promote generic medicines, which maintain the same quality but have lower cost, and provide affordable treatment to the public.
5. Strengthened Public Interest Control:
DPCO 2019 ensured that whenever there is public interest, the government can directly control the price of any medicine, whether it is in the list or not.
Drug Price Control Order Act (DPCO Act)
There is a government regulation that controls the prices of essential medicines. Its main aim is to make essential medicines affordable and easily available to everyone. Under this Act, NPPA (National Pharmaceutical Pricing Authority) works, which fixes the MRP of medicines and ensures that no company indulges in overpricing.
