Pandemic led to drug price hike: Manufacturers

NT Correspondent
Bengaluru

The prices of many drugs have increased, and drug manufacturers have blamed the pandemic and the resulting supplychain disruption, especially from China, for this spike. They said this is true of paracetamol for which active pharmaceutical ingredients are imported from China, which provides over 70 per cent of APIs for Indian manufacturers.

The production cost of paracetamol has gone up to Rs 700 per kg, from Rs 250 during the prepandemic days. Moreover, there was an increase in the demand for paracetamol because it happens to be an antipyretic (brings down body temperature). It was used extensively by Covid-19 patients to reduce high fever and across the globe paracetamol tablets were flying off the shelves.

Back in March this year, the National Pharmaceutical Pricing Authority (NPAA) had approved a 10.8 per cent hike for some 850 formulations being manufactured from the start of April. Some of the drugs that have seen an increase in cost are paracetamol, metformin, clopidogrel, levothyroxine, carbamazepine and diltiazem.

These drugs are used to bring down fever and sugar levels while others are meant for heart patients and those who suffer from seizures.

Karnataka Drug and Pharmaceuticals Manufacturers Association President Harish Jain said that everything from production to supply of APIs was disrupted during the pandemic. “Intermediates and key starting materials required for manufacture of paracetamol are mostly imported from China and due to pandemic there is huge demand from all over the world. There is also a disruption in shipping as well as supply chain logistics, availability of labour and other multiple factors.

Annual price hike

Jain added that revision of drug prices was a yearly affair. “As per Para 16 (1) of DPCO 2013 ‘The Government shall revise the ceiling prices of scheduled formulations (like Paracetamol, Metformin etc. which are listed in National list of essential medicines) as per the annual WPI for preceding calendar year on or before 1st April of every year and notify the same on the 1st day of April.”

Annual WPI for the preceding year was 10.766% and accordingly ceiling prices were revised wef (with effect from) April 1, 2022. All these drugs manufactured after April 1 are eligible to be in circulation with revised prices,” he said. Jain defended the hiking of prices, adding that there were provisions for relief to marginalised patients.