DPCO Full Form: Drug Price Control Order (DPCO 2013) Explained – Ceiling Price, NLEM, NPPA and What It Means for Chemists and PCD Partners

By the Trumac Healthcare team, Panchkula · PCD pharma franchise company since 2007 · Updated 14 November 2026 · About us · WhatsApp +91 90416 77932

DPCO full form: Drug Price Control Order – officially the Drugs (Prices Control) Order, 2013. It is the law under which the Government of India caps the prices of essential medicines and limits price increases on all others. This guide explains how DPCO works, how a ceiling price is calculated, the 2025 and 2026 price revisions, and what DPCO means for chemists, distributors and PCD franchise partners.

DPCO at a glance

DPCO क्या होता है? (हिंदी में)

DPCO यानी Drugs (Prices Control) Order, 2013 – दवाओं की कीमत नियंत्रित करने का सरकारी आदेश। ज़रूरी दवाओं (NLEM 2022 की 384 दवाएँ) पर NPPA सीलिंग प्राइस तय करता है – कोई भी ब्रांड इससे ज़्यादा (GST जोड़कर) MRP नहीं रख सकता। बाकी दवाओं की MRP 12 महीने में 10% से ज़्यादा नहीं बढ़ाई जा सकती। केमिस्ट को DPCO शेड्यूल्ड दवाओं पर PTR पर 16% और स्टॉकिस्ट को PTS पर 8% मार्जिन मिलता है।

Scheduled and non-scheduled medicines

DPCO divides medicines into two groups. Scheduled formulations are the medicines listed in Schedule I of the order, which is the National List of Essential Medicines (currently NLEM 2022, 384 medicines – paracetamol, amoxicillin, metformin, atorvastatin, amlodipine and the like, in the listed strengths and dosage forms). For these, NPPA notifies a ceiling price, and every brand – branded or generic – must sell at or below it. All other medicines, including most combinations, are non-scheduled: the company fixes the launch price, but may not raise the MRP by more than 10% in any 12 months.

How the ceiling price is calculated

• Take every brand of the medicine (same strength and dosage form) with at least 1% market share of that medicine’s total sales.
• Work out the simple average of their price to retailer (PTR).
• Add a 16% retailer margin. The result is the ceiling price per tablet, capsule or ml.
• The ceiling price excludes GST: the MRP can be at most the ceiling price plus the applicable GST – now 5% on medicines (see GST on medicines).
• A company already selling below the ceiling must not raise its price above its existing level plus the permitted annual increase.

Annual price revision (WPI)

Every April, NPPA lets companies raise the MRP of scheduled medicines by the change in the wholesale price index (WPI) for the previous calendar year – no separate approval is needed, but the revision must be reflected in a fresh price list.

Other DPCO rules the trade should know

• Price list (Form V): manufacturers must issue a price list and supplementary lists to dealers, state drug controllers and the government; retailers and dealers must display the current price list in the shop.
• New drugs: a company launching a “new drug” as defined in DPCO (for example a scheduled medicine in a new combination or strength) needs its retail price fixed by NPPA before launch.
• Extraordinary powers (para 19): the government can fix prices of any drug in public interest – it capped coronary stents (2017) and knee implants (2017) and limited trade margins on 42 anti-cancer medicines to 30% (2019).
• Exemptions (para 32): certain patented drugs and indigenously developed new drug-delivery systems are exempt for five years, and orphan drugs can be exempted.
• Overcharging: NPPA recovers the overcharged amount with interest; violations are punishable under the Essential Commodities Act.

What DPCO means for chemists, distributors and PCD partners

• Before taking a product, check whether the composition is in the NLEM. If it is, its MRP must be within the ceiling price plus GST – a pack priced above it is a compliance risk for everyone who sells it.
• Ask the company for its current price list (Form V or equivalent) showing MRP and GST for every product; keep the supplementary lists issued each April and after any GST change.
• Most PCD ranges are dominated by non-scheduled combinations, where the 10%-a-year rule matters more than ceiling prices – sudden price jumps of more than 10% are not allowed.
• Margins are worked out on the MRP excluding GST: use the PTR PTS calculator to check the retailer and stockist margins on any MRP.
• Licensing and GST registration come first – see the drug licence guide and the requirements guide.

This page summarises the Drugs (Prices Control) Order, 2013 and NPPA notifications as of November 2026 for the pharma trade. It is not legal advice; for a specific product check the current NPPA notification or the Pharma Sahi Daam app.

Frequently asked questions

What is the full form of DPCO?

DPCO stands for Drug Price Control Order – officially the Drugs (Prices Control) Order, 2013. It is the order under which the Government of India controls the prices of essential medicines.

What is DPCO in pharmacy?

In pharmacy and the medicine trade, DPCO is the law that caps the maximum retail price of scheduled (essential) medicines and limits how fast the prices of other medicines can rise. It is implemented by the National Pharmaceutical Pricing Authority (NPPA).

In which year was the DPCO act passed?

The current order, DPCO 2013, was notified on 15 May 2013 under Section 3 of the Essential Commodities Act, 1955. It replaced DPCO 1995; earlier orders were issued in 1970, 1979 and 1987.

Which medicines come under DPCO?

Scheduled formulations – the medicines listed in Schedule I of DPCO, which is the National List of Essential Medicines (NLEM 2022, 384 medicines) – have ceiling prices. All other medicines are non-scheduled; their prices are not fixed but cannot be raised by more than 10% in 12 months.

How is the ceiling price calculated?

NPPA takes the simple average of the price to retailer (PTR) of all brands of that medicine with at least 1% market share and adds a 16% retailer margin. The ceiling price excludes GST; the MRP can be at most the ceiling price plus GST.

Can a company increase the MRP of a medicine?

For scheduled medicines, only in line with the annual wholesale price index (WPI) revision NPPA notifies each April – +1.74% from 1 April 2025 and +0.65% from 1 April 2026. For non-scheduled medicines, by not more than 10% of the MRP in the preceding 12 months.

Where can I see the latest DPCO price list?

NPPA publishes ceiling-price notifications on its website (nppaindia.nic.in) and in its Pharma Sahi Daam app, where you can search a medicine by name. Manufacturers must also give dealers a price list in Form V.

What happens if a chemist or company overcharges?

NPPA can recover the overcharged amount from the manufacturer with interest, and violations are punishable under the Essential Commodities Act. Patients can complain to NPPA or the state drug controller.

Need a PCD price list with MRP and GST for every product? WhatsApp +91 90416 77932 with your district; we send the current Trumac Healthcare price list (3000+ products, 15 divisions) and confirm monopoly availability. Related: PCD full form · GST on medicines · franchise cost · product list.