Union government has allowed the pharmaceutical companies to hike the rates of 509 essential medicines by 3.84%. These medicines used for treating various ailments like hepatitis B and C, fungal infections, diabetes, and cancer. The Government of India monitors the prices of 348 essential medicines based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1%. The government also monitors prices of all other medicines and pharma companies are allowed to hike prices of such drugs by only up to 10% in a year.

The new prices will be effective from 1st of April 2015. The National Pharmaceutical Pricing Authority (NPPA) has released a notification under Drug Price Control Order (DPCO), 2013 in line with the wholesale price index of 2014. The annual increase in the wholesale price index (WPI) works out at 3.84 % during 2014 over the corresponding period in 2013.

WHO’s Definition for Essential Medicines

Essential medicines, as defined by the World Health Organization (WHO) are “those drugs that satisfy the health care needs of the majority of the population; they should therefore be available at all times in adequate amounts and in appropriate dosage forms, at a price the community can afford“.

The “WHO Model List of Essential Medicines” has been updated every two years since 1977. The current version, the 18th, was published in 2013.