NPPA tells chief secys to keep tabs on API availability

New Delhi: India’s drug pricing regulator has asked state governments to closely monitor availability of active pharmaceutical ingredients (APIs) and formulations as part of efforts to ensure that there is no shortage of bulk drugs in the backdrop of the coronavirus outbreak.

In a letter to the chief secretaries, the National Pharmaceutical Pricing Authority (NPPA) has asked them to ensure that there is no violation to the provisions of the Drug Pricing Control Order (DPCO) with regard to compliance of selling price.



“In that case, necessary action will be taken,” the letter dated February 20 said, reflecting the government’s determination to curb possible black marketing and hoarding. ET has reviewed the letter.

The regulator has also asked chief secretaries to closely monitor availability of APIs as a measure of public health preparedness in respect of APIs, intermediates and key starting materials which are imported from China. APIs are the key raw materials used for making pharmaceutical formulations like tablets, capsules and syrups.

“Chief secretaries have been asked to monitor companies are complying with the selling price too,” a senior official told ET.

On February 19, government think tank Niti Aayog had held a meeting with top drug makers and policy makers to discuss options for domestic manufacturers of critical APIs in which India is dependent on imports.

To attain self-sufficiency in bulk drugs and reduce dependence on China, it was suggested that production capacity should be built for 58 APIs on which India is significantly dependent on China.

According to data available with the Pharmaceutical Export Promotion Council (Pharmexcil), the cost of paracetamol has gone up from Rs 250-300 a kg to Rs 400-450. Similarly, “montelukast sodium (anti-asthmatic drug) is trading at Rs 52,000-58,000 per kg, compared with Rs 33,000-38,000 a few months ago,” said Dinesh Dua, chairman, Pharmexcil, which functions under the commerce ministry. Similarly, prices of vitamins and penicillin have also shot up by 40-50%.