NPPA Annual Drug Price Revision 2026: What Changed and What It Means

Every year, the National Pharmaceutical Pricing Authority (NPPA) revises the ceiling prices of scheduled formulations under the Drug Prices Control Order (DPCO) 2013. The revision uses a formula set in Para 16 of DPCO 2013, linking price changes to the annual Wholesale Price Index (WPI) for the preceding calendar year.

For 2026, NPPA applied a WPI of 0.64956% - representing a modest upward revision of scheduled drug ceiling prices by that percentage. This article explains the mechanism, the gazette notifications issued, and one verified price example. For the full revised price list, check the NPPA website directly.

How the Para 16 Mechanism Works

DPCO 2013 Para 16 sets out the formula for annual price revision of scheduled formulations (those listed in the First Schedule of DPCO 2013, corresponding to the NLEM). The revision is automatic and mandatory - NPPA does not need a new legislative order each year. The formula is:

The WPI figure NPPA uses is the annual average change in WPI for manufactured products (or the all-commodities WPI - the precise index category used is specified in the gazette). The 2026 revision used WPI of 0.64956%, meaning ceiling prices increased by just under 0.65%.

This is a small revision. By comparison, the 2022 WPI-based revision used a WPI of around 10.7%, which was the highest in many years due to post-pandemic inflation. The 2026 figure reflects stabilising wholesale prices.

Gazette Notifications Issued: 2026 Price Revision

NPPA issued four gazette notifications as part of the 2026 annual price revision, covering different cohorts of the scheduled formulations list:

The split across multiple S.O. notifications reflects the different NLEM editions - medicines from NLEM 2022 are handled separately from those carried over from NLEM 2015 or NLEM 2011. The full revised price schedules for all 919 formulations (767 + 138 + 6 + 8) are published in these gazette notifications.

A Verified Price Change: Benzathine Benzylpenicillin

Specific revised prices for the 919 formulations are listed in the gazette notifications. One price that was independently verifiable:

Note: S.O. 2681(E) is a specific separate notification for Benzathine Benzylpenicillin and is not one of the four main Para 16 annual revision notifications listed above. It was issued on 27 May 2026.

What Counts as a "Scheduled Formulation"?

Under DPCO 2013, only medicines listed in the First Schedule (derived from the NLEM) are subject to price ceiling controls. The NLEM 2022 contains 384 medicines, though the actual number of scheduled formulations (different strengths and dosage forms of those 384 medicines) runs to several hundred more entries.

Non-NLEM medicines are not subject to Para 16 price control. Manufacturers of non-scheduled formulations can price freely but are subject to a separate provision: Para 20 of DPCO 2013, which limits annual price increases of non-scheduled formulations to no more than 10% in any 12-month period.

Who Needs to Act on the Price Revision?

Manufacturers and Marketing Authorisation Holders

• Update MRP on all subsequent batches of scheduled formulations to reflect revised ceiling prices
• Ensure price displays on labels comply with the new ceiling. Selling above the revised ceiling is a DPCO violation
• File revised price lists with NPPA within the stipulated timeline after each annual revision gazette

Wholesale and Retail Distributors

• Old-stock products (manufactured before the revision) retain their printed MRP - they do not need relabelling
• New stock from manufacturers will carry revised MRPs
• For NLEM medicines, no distributor may sell above the MRP printed on the pack or the current ceiling price, whichever is lower

Pharmacies

• A pharmacy cannot charge above the MRP on the pack or the NPPA ceiling, whichever is lower
• Pharmacies are not required to independently track NPPA gazettes - the price reflected on a manufacturer's pack is the binding point
• However, awareness of NPPA ceiling prices helps identify products where overcharging is occurring

Why This Revision Is Small

The WPI of 0.64956% is significantly lower than the inflation experienced in past years. The WPI for manufactured products in India was high in 2022 (driven by commodity price spikes post-pandemic) but has moderated. A low WPI revision means:

• Price ceiling increases are minimal - a medicine with a ₹100 ceiling in 2025 will have a ceiling of approximately ₹100.65 in 2026
• Manufacturers whose input costs have risen faster than WPI may face margin pressure on scheduled formulations
• For patients buying NLEM medicines, the cost change is negligible

The intent of WPI-linked revision is to keep scheduled medicine prices indexed to general inflation, preventing both manufacturer hardship and price erosion of purchasing power in patients over time.

Context: NLEM 2022 and the Current Scheduled List

India's current NLEM (National List of Essential Medicines) is the 2022 edition, which contains 384 medicines across therapeutic categories. It replaced the NLEM 2015 (376 medicines). The S.O. 1575(E) gazette covering 767 formulations from NLEM 2022 is therefore the largest of the four 2026 revision notifications - it covers almost all currently controlled medicines.

The continued presence of NLEM 2015 (S.O. 1581(E)) and NLEM 2011 (S.O. 1582(E)) formulations in the revision reflects that some older prices remain in force for specific products that were on those lists but are no longer on NLEM 2022, or where transition to the new list's pricing is still ongoing.

This article explains the Para 16 mechanism and lists gazette S.O. numbers as reported. Specific ceiling prices for all 919 formulations are published in the official gazette notifications. Always verify current ceiling prices against nppa.gov.in or the official gazette before making compliance or business decisions. This article does not constitute legal or regulatory advice.