This document summarizes the Drug (Price Control) Order of 1995 in India. It establishes schedules that list bulk drugs and formulations subject to price controls. The order's objectives are to ensure adequate production and equitable distribution of drugs, maintain drug supplies, and make drugs available at fair prices. It defines key terms and establishes the formula used to calculate the retail price of scheduled formulations based on material and manufacturing costs. The government has the power to exempt manufacturers from price controls after considering factors like number of employees, capital invested, products made, sales, and production of new drugs. Penalties are established for non-compliance.

1. DRUG (PRICE CONTROL)
ORDER 1995
Prepared by : Priya D. Yannawar

2. Content:
 Introduction
 Objective
 Schedule
 Definitions
 retail price of formulation
 Power to fix retail price of scheduled formulations
 penalties

3. Introduction
 This order is governed under Central Government
 Regulated by Essential Commodities Act, 1955 under section 3.
 Amendment:
 Display of price order-1962
 Control of price-1963
 DPCO-1966
 DPCO-1970
 DPCO-1979
 DPCO-1987
 DPCO-1995
 DPCO-2013

4. Objective:
1. To achieve adequate production
2. To secure or regulate the equitable distribution
3. To maintain and increase the supplies of bulk drug and formulations
4. To make this available at fair prices.

5. Schedule:
 There are total three schedule
 Schedule 1:
List of 76 bulk drugs
 Schedule 2:
Form of approval or revision of prices of schedule formulation( form 1 to form 6)
 Schedule 3:
Pre tax returns on sale turnover of manufactured importer of formulation as A,B,C category.

6. Definition's:
 Bulk drugs:
Any pharmaceutical, chemical, biological or plant product including its salts and derivatives which
conforming to pharmacopoeial standard
 Ceiling price:
price fixed by government for scheduled formulation.
 Dealer:
Person carrying out business of purchase or sale of drugs whether as wholesaler or retailer
 Distributor:
Distributor of drugs or his agents appointed by manufacturer
 Formulation:
Medicine processed out of, or containing one or more drugs with or without pharmaceutical excipients to
treat diseases.

7. Continue..
 Import:
Bringing into India from place outside India
 Net worth:
It means paid up share capital of a company plus free reserve
 Retail price:
It means the retail price of drug fixed in accordance with the provisions of drugs (price control) order
 Retailer:
Means a dealer carrying on the retail business of sale of drugs to customer
 Scheduled bulk drugs:
Bulk drug specified in the first schedule
 Scheduled formulation:
Formulation containing any bulk drug specified in the first schedule either individually or in the combination

8. • Retail price of formulation:
 By applying following formula, retail price of the formulation is calculated by the
government:
RP = (MC+ CC+ PM+ PC) * ( 1+ MAPE/100) + ED
RP = Retail price
MC = Material cost
CC = conversion cost
PM = Cost of packing material
PC = packing charges
MAPE = maximum allowable post manufacturing expenses
ED = excise duty

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13. • Power to exempt:
 Government has power to exempt any manufacturer from the operation of all or any of
this order on consideration of all or any of the following factor:
1. Number of worker employed
2. Amount of capital invested
3. Type of product manufactured
4. Sales turnover
5. Production of new drug which has not been produced

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