March 26, 2025: Prices of government-regulated medicines, including those for cancer, diabetes, heart diseases, and antibiotics, are set to increase by 1.7%, sources told Business Today. The price hike, which is expected to take effect in the coming months, is aimed at offsetting rising costs in the pharmaceutical industry.

Rajiv Singhal, General Secretary of the All India Organisation of Chemists and Druggists (AIOCD), stated that the move would bring relief to pharmaceutical companies struggling with increasing raw material costs. "It will take around two to three months for the new prices to reflect in the market, as there are approximately 90 days’ worth of saleable medicines available at any given time," he said.

A recent study by the Parliamentary Standing Committee on Chemicals and Fertilisers found that several pharmaceutical companies have been repeatedly breaching regulations by exceeding allowable price hikes. The National Pharmaceutical Pricing Authority (NPPA), responsible for regulating drug prices in India, has identified 307 instances of violations by pharma companies.

The NPPA sets ceiling prices for essential drugs as per the Drug (Prices Control) Order (DPCO), 2013, ensuring that manufacturers and marketers sell their products at or below the fixed price, inclusive of Goods and Services Tax (GST).

Earlier this month, the Ministry of Chemicals and Fertilisers reported that the price cap on medicines listed in the National List of Essential Medicines (NLEM), 2022, led to an estimated annual savings of ₹3,788 crore for patients. However, with the upcoming price hike, concerns remain about the affordability of essential medicines for those in need.