Medicine Price Hike: Amid the rise in the price of food items, drinks, and everyday products, now medicines have also become expensive in India. The National Pharmaceutical Pricing Authority (NPPA) has approved the rate hike for 905 essential medicines in the country. The new rates are applicable from April 1, Zee Business' Ambarish Pandey reports.

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In this regard, the Ministry of Chemicals and Fertilisers has issued a notification. According to that, all pharmaceutical companies have been allowed to set rates according to the new ceiling price.

This is the second consecutive year in which prices of medicines have been hiked.

Why did medicines become expensive?

The report stated that pharmaceutical companies had demanded hikes in medicine prices amid rising inflation.

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How expensive have the medicines become?

The hikes in medicine prices are based on WPI. The revision in the rate of medicine has been fixed at 12.12% WPI. And companies will be able to collect Goods and Services Tax (GST) on it only when they have paid it.

Apart from that, every drug manufacturing company will have to inform retailers, dealers, and the government about the change in all medicine rates within 15 days.

If a company wants to stop the production of a particular medicine, then it has to inform the government six months in advance.

On the other hand, if the companies charge more than the prescribed rate, a penalty along with interest will be applicable. After this order, drug manufacturers and pharma companies can increase the price of their products with immediate effect.