Drug Price Control Order Act (DPCO Act)

Drug Price Control Order Act (DPCO Act) -  The DPCO Act comes under the Essential Commodities Act (ECA). it helps the government in pricing control in the case of drugs. Under Drug Price Control Order Act, the government set a ceiling price for all the necessary medicines. To make a balance in-between the consumer's and manufacturers' interests, the Ministry of Chemicals and Fertilizers insisted Drugs Amendment Order in Jan 2019. 

The main aim of this DPCO Act is to make sure affordability of essential medicines in the country. There are two authorities involved in the making and improvising of the Act. The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. Also, the first time this act came into existence was in the year 2013 under section 3 of the Essential Commodities Act. Moreover, The National Pharmaceutical Pricing Authority (NPPA) is responsible for the implementation of the Drug price control order act. This authority is attached to both the Department of Pharmaceuticals and the Ministry of Chemicals & Fertilizers. 

The increasing demand for pharma products is creating a competitive environment within the pharma sector. To break the monopoly, especially in the case of basic medicines, the government interfere to save the interest of the consumers and ensure their basic right. In this blog, you will get full information about the Drug Price Control Order Act (DPCO Act)

Reasons Of Why This DPCO Act came into Existence 

Now, let’s take a look into the applicability of this act, such as - 

  1. First of all, there are top pharma companies that can control the pricing of a medicine/drug which can be an essential drug. These drugs can impact many large patients but their high pricing can limit their usability across the country. 
  2. To provide maximum benefits for these medicines, the government interfere to lower the pricing by considering that particular medicine under the essential category. 

In addition, the pricing decided under the DPCO Act is based on the taking average of the medicines being provided by the different companies and considering two things - market share, and moving annual turnover. 

 What Do You mean by Essential Medicine?

The concept of Essential Medicine started in the year 1977 by the World Health Organization. There is a list of medicines that are there necessary for human health care. For considering a medicine under the essential medicine category, there are some points to be considered - 

  1. Public health importance
  2. Proof and evidence on effectiveness and safety,
  3. Cost-effective comparison

Following are the features of an essential medicine - 

  1. First of all, medicines under essential categories should be available at all times in adequate stock.
  2. Secondly, the quality of these essential medicines should meet the standard.
  3. Lastly, all these essential medicines are should be affordable.

The Steps Taken By the Government for Implementation and Rationalizing the Essential Medicines

  1. Mandatory clinical guidelines are to be followed for all essential medicines.
  2. Setting up drug committees across districts hospitals.
  3. Supervise, audit, and give feedback to these committees.
  4. Spending enough to maintain stocks of these essential medicines. 

Documents Required For Wholesale Drug License

Drug License are of two types - Retail Drug and Wholesale Drug. The Retail Drug license is issued to the people who want to run a chemist shop. On the other hand, a Wholesale drug license is issued to the people who want to sell drugs at the wholesale level. Following is the list of drug licenses related to the pharma business in India -

  • Drug Manufacturing license
  • Wholesale Drug License
  • Retail Drug License
  • Import of Drugs or Cosmetics
  • Import of Medical equipment, etc.

Now, let’s take a look at the documents required for acquiring Drug License - 

  1. Cover letter
  2. Challan of Fees deposit
  3. Declaration form
  4. Key and site plans of the premises
  5. Affidavit of partner, pharmacist, and partner
  6. Freezer vill
  7. Rent or ownership agreement
  8. Firm registration receipt

What is the Role Of The Medical Representative?

Medical Representative is the bridge between pharma sellers and companies. These create awareness, promotions, and demand for existing or new products among the retailers or stockiest.  The company hires them as their representative to fix meeting with suitable clients that can be a doctor, pharmacist, or other healthcare professionals. Also, the job is based on targets and need a good set of skills consisting of communication, problem-solving, selling, and time management. 

Following is the set of key responsibilities of a Medical Representative 

  1. Managing the launch of new pharma products
  2. Meeting Sales targets
  3. Managing customer support and customer service
  4. Promoting campaign of pharma range
  5. Representative of the company
  6. Maintaining records and reporting


Hope you get all the information regarding Drug Price Control Order Act (DPCO). This Act ensures the availability of pharma products at an affordable range and sufficient quantity in the market. This helps give the basic rights to healthcare treatment and diminish money-based discrimination. Lastly, for more information, feel free to reach out to Syntonix Biofarm!