Question:

Who has the power to fix the ceiling price of scheduled formulations:

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The National Pharmaceutical Pricing Authority (NPPA) is responsible for fixing the ceiling price of essential medicines to ensure affordability and prevent overpricing.
Updated On: Jul 14, 2026
  • Director General Health Services
  • Pharmacy Council of India
  • National Medical Commission
  • National Pharmaceutical Pricing Authority
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The Correct Option is D

Approach Solution - 1

Step 1: Understanding the regulation of drug pricing in India. In India, the National Pharmaceutical Pricing Authority (NPPA) is responsible for controlling and regulating the prices of essential medicines, also known as scheduled formulations under the Drug Price Control Order (DPCO). 

Step 2: Role of NPPA. - The NPPA sets the ceiling price for drugs listed in the National List of Essential Medicines (NLEM) to ensure their affordability. 
- It monitors drug prices and takes action against overpricing to protect consumer interests. 

Step 3: Why other options are incorrect. 
- (A) Director General Health Services: Focuses on public health programs and hospital administration, not drug pricing. 
- (B) Pharmacy Council of India: Regulates pharmacy education and profession, not pharmaceutical pricing. 
- (C) National Medical Commission: Regulates medical education and practices but does not control drug prices.

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Approach Solution -2

The question asks which body has the legal power to fix the ceiling price of scheduled formulations in India. Since each listed body regulates a different part of healthcare or pharmacy, matching their actual statutory role to drug pricing identifies the correct one.

  1. Director General Health Services: This office oversees public health programs, disease control initiatives, and technical guidance to hospitals under the health ministry. It has no statutory authority over drug pricing.
  2. Pharmacy Council of India: This body regulates pharmacy education and the registration of pharmacists across the country. Its mandate covers professional standards, not price control.
  3. National Medical Commission: This body regulates medical education, licensing of doctors, and standards for medical colleges. Drug pricing falls entirely outside its statutory functions.
  4. National Pharmaceutical Pricing Authority: This is the body set up under the Drug Price Control Order specifically to fix and revise the ceiling prices of scheduled formulations listed in the National List of Essential Medicines, and to monitor compliance so that essential drugs stay affordable and available.

Setting drug prices is a specialized statutory function assigned to the National Pharmaceutical Pricing Authority alone, not to the education, licensing, or public health bodies listed alongside it.

Therefore, the correct answer is National Pharmaceutical Pricing Authority.

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