As part of the annual exercise, the National Pharmaceutical Pricing Authority (NPPA) has revised the norms for conversion costs, packaging charges, process loss of materials and packaging material costs, by effecting upto 9 per cent differences.

The NPPA has notified the new norms and prices, revising the existing norms which were fixed on November 2007. The new norms, which were finalised, based on the inputs from the manufacturers and studies would come into force with immediate effect, the official notification said.

NPPA sources said there is a 3 to 9 per cent hike in the new rates, compared to the previous norms. The agency had started the work to revise the fix the norms for conversion costs (CC), packing charges (PC), process loss (PL) and packaging materials (PM) from January this year, by inviting inputs from the manufacturers. The norms were worked out based on actual cost data or information received from various manufacturers and formulators. Two detailed questionnaire in printed form had been sent to pharma units and industry associations.

Conversion costs of tablets plain (per 100 nos) upto 100 mg went up from Rs 7.26 to Rs 7.93 and in medium section (101 mg to 350 mg), the costs rose from Rs 10.51 to 10.99. In the large tablets section (351 mg to 600 mg), costs went up from Rs 17.68 to Rs 19.31. Likewise, prices in the extra large section (601 mg to 900 mg); new price is Rs 22.78 against existing Rs 20.86.

Similar hike is also affected in packaging charges and packaging materials too, while the percentage of loss of raw materials (other than packing materials in conversion and packing) and process loss of packing materials in packaging remained the same.

"In pursuance of paragraph 7 of the Drugs (Prices Control) Order, 1995, read with No. S.O. 637(E) dated the 4th September, 1997 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority, in suppression of the order of the Government of India in the Ministry Chemicals and Fertilizers (National Pharmaceutical Pricing Authority) No. S.O. 2068(E) dated 30th November, 2007, published in the Gazette of India, extraordinary, part II, Section – 3, sub-section (ii), hereby prescribes the norms as prescribed below for Conversion Cost, Packing Charges and Process Loss of materials for the purpose of the said paragraph, which shall come into force with immediate effect," stated a release.