Glossary
DPCO meaning: drug price control and your clinic What the 2013 order controls, the terms it defines, and the rules that reach a clinic that sells medicines to its patients.
Most of the DPCO is about how the government sets a ceiling price and what manufacturers must do. A few paragraphs reach anyone who sells medicine to a patient, including a clinic that hands over medicines at the desk. Here is the order in plain terms, with the paragraphs to read.
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- The DPCO was notified by SO 1221(E) on 15 May 2013 under section 3 of the Essential Commodities Act, 1955; the Department of Pharmaceuticals copy is amended up to SO 2324(E) of 25 May 2023.
- Paragraph 26: "No person shall sell any formulation to any consumer at a price exceeding the price specified in the current price list or price indicated on the label of the container or pack thereof, whichever is less."
- NPPA, set up by a Government of India resolution of 29 August 1997, says it is "implementing the Drugs (Price Control) Order, 2013" and fixes ceiling prices for drugs in Schedule-I.
The Drugs (Prices Control) Order, 2013 (DPCO) is the Central Government order, made under section 3 of the Essential Commodities Act, 1955, under which ceiling prices are fixed for the scheduled formulations in its First Schedule and no person may sell a formulation to a consumer above the price list or label price, whichever is less. The First Schedule is the National List of Essential Medicines, now the 2022 edition. Medicines outside it are "non-scheduled formulations". For those, paragraph 20 has the government monitor the maximum retail price and stop any manufacturer raising it by more than ten percent in twelve months.
What is the DPCO?
A price control order for medicines, issued by the Department of Pharmaceuticals and implemented by the National Pharmaceutical Pricing Authority (NPPA). NPPA's own page says it was "constituted through a Government of India Resolution dated 29th August, 1997" and that its responsibilities include "fixing and revising drug prices as per the provisions of the Drugs Prices Control Order (DPCO), monitoring compliance and availability of drugs". The order replaced the Drugs (Prices Control) Order, 1995.
| Term | What the order says |
|---|---|
| Ceiling price, 2(d) | "a price fixed by the Government for Scheduled formulations in accordance with the provisions of this Order" |
| Scheduled formulation, 2(zb) | "any formulation, included in the First Schedule whether referred to by generic versions or brand name" |
| Maximum retail price, 2(r) | "the ceiling price or the retail price plus local taxes and duties as applicable, at which the drug shall be sold to the ultimate consumer" |
| Retailer, 2(za) | "a dealer carrying on the retail business of sale of drugs to customers" |
| Formulation, 2(i) | Excludes medicines of the Ayurvedic (including Siddha), Unani and Homeopathic systems |
Where does the rule come from?
From the order itself, as notified in the Gazette and amended since. The paragraphs that reach a seller are short. Paragraph 26 is quoted above. Paragraph 27 says "No dealer shall sell loose quantity of any formulation at a price which exceeds the prorata price of the formulation." Paragraph 24(4) says "Every retailer and dealer shall display the price list and the supplementary price list, if any, as furnished by the manufacturer, on a conspicuous part of the premises where he carries on business", and paragraph 25(3) says the same for non-scheduled formulations. Paragraph 28(b) says no dealer shall "withhold from sale or refuse to sell any drug available with him to a customer intending to purchase such drug".
What it means for a small clinic that dispenses
Paragraph 26 is written for "any person" selling to "any consumer", so it is the line to keep in mind at the desk. Take Sunrise Clinic, a sample single-doctor clinic that hands patients a few days' supply of a tablet cut from a strip. The charge for that supply cannot go above the printed price or the current price list, whichever is lower, and paragraph 27 limits a loose quantity to the pro rata price of the pack. If the clinic sells medicines as a business, the retailer duties in paragraphs 24(4), 25(3) and 28 are the ones to read, along with the drug licence conditions your State Drugs Controller sets.
The doctor's own rules sit alongside. Clause 6.3 of the 2002 conduct regulations says "It is not unethical for a physician to prescribe or supply drugs, remedies or appliances as long as there is no exploitation of the patient", and that a physician "should not run an open shop for sale of medicine for dispensing prescriptions prescribed by doctors other than himself". Vitels bills consultation and procedure fees; it has no pharmacy or stock module, so medicine sales and their price lists sit outside it.
Does the DPCO apply to a single-doctor clinic?
The order sets no size threshold. Paragraph 26 applies to any person who sells a formulation to a consumer. A clinic that only prescribes and sells nothing has no selling duty under the order. To check a price, NPPA publishes ceiling price lists on its website and runs the Pharma Sahi Daam app; its helpline is 1800111255.
Questions
What is the full form of DPCO?
Drugs (Prices Control) Order. The order in force is the Drugs (Prices Control) Order, 2013, notified by SO 1221(E) on 15 May 2013.
Who implements the DPCO?
The National Pharmaceutical Pricing Authority, an attached office of the Department of Pharmaceuticals. Its website says it is implementing the 2013 order under the powers delegated to it.
Can a clinic charge more than the MRP for a medicine?
No. Paragraph 26 bars any person from selling a formulation to a consumer above the current price list or the label price, whichever is less, and paragraph 27 caps loose quantities at the pro rata price.
Does the DPCO cover Ayurvedic or homoeopathic medicines?
No. Paragraph 2(i) excludes medicines of the Ayurvedic (including Siddha), Unani (Tibb) and Homeopathic systems from the definition of "formulation".
Sources
- Department of Pharmaceuticals, The Drugs (Prices Control) Order, 2013, notified by SO 1221(E) of 15 May 2013, as amended up to SO 2324(E) of 25 May 2023, paragraphs 1, 2, 24 to 28 and 32 (accessed Invalid Date)
- National Pharmaceutical Pricing Authority, About NPPA (accessed Invalid Date)
- Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, amended up to 8 October 2016, clause 6.3 (NMC) (accessed Invalid Date)
This is operational guidance for clinics, not legal or tax advice. Confirm with your state authority, council or CA.
Drafted with AI assistance; every fact checked against the sources listed; reviewed by the Vitels editorial team.