UPSC Prelims Practice Questions — ‘Broad daylight dacoity’: SC on essential cancer drugs’ prices

Q1. As on 25 March 2025, for how many scheduled formulations had the National Pharmaceutical Pricing Authority fixed ceiling prices under the Drugs (Prices Control) Order, 2013?

  • A. 384
  • B. 526
  • C. 871
  • D. 928

Q2. With reference to the difference between scheduled and non-scheduled formulations under the Drugs (Prices Control) Order, 2013, consider the following statements: 1. For a scheduled formulation, the manufacturer is free to fix the launch price, and the only restriction is that the maximum retail price may not be raised by more than 10 per cent in the preceding twelve months. 2. Ceiling prices of scheduled formulations are revised annually on the basis of the Wholesale Price Index for all commodities. 3. Non-scheduled formulations are those not listed in Schedule I of the Order, and the National Pharmaceutical Pricing Authority monitors them to ensure that their prices do not rise by more than 10 per cent in a year. Which of the statements given above is/are correct?

  1. For a scheduled formulation, the manufacturer is free to fix the launch price, and the only restriction is that the maximum retail price may not be raised by more than 10 per cent in the preceding twelve months.
  2. Ceiling prices of scheduled formulations are revised annually on the basis of the Wholesale Price Index for all commodities.
  3. Non-scheduled formulations are those not listed in Schedule I of the Order, and the National Pharmaceutical Pricing Authority monitors them to ensure that their prices do not rise by more than 10 per cent in a year.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the National Pharmaceutical Pricing Authority (NPPA), consider the following statements: 1. It functions as an attached office of the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. 2. It operates the 'Pharma Sahi Daam' platform, which gives consumers access to the prices of both scheduled and non-scheduled medicines. 3. It was set up as a statutory regulator under the Drugs and Cosmetics Act, 1940. 4. Under its consumer awareness, publicity and price monitoring scheme, it has set up Price Monitoring and Resource Units in States and Union Territories. Which of the statements given above is/are NOT correct?

  1. It functions as an attached office of the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers.
  2. It operates the 'Pharma Sahi Daam' platform, which gives consumers access to the prices of both scheduled and non-scheduled medicines.
  3. It was set up as a statutory regulator under the Drugs and Cosmetics Act, 1940.
  4. Under its consumer awareness, publicity and price monitoring scheme, it has set up Price Monitoring and Resource Units in States and Union Territories.
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 and 4
  • D. 3 only

Q4. In the context of NPPA's intervention on select anti-cancer medicines, the 'Trade Margin Rationalisation' approach refers to which one of the following?

  • A. Restricting the annual rise in the maximum retail price of the selected anti-cancer medicines to 30 per cent of the price prevailing in the preceding year
  • B. Limiting to 30 per cent the margin between the price at which the selected anti-cancer medicine is supplied to the retailer and its maximum retail price
  • C. Fixing the ceiling price of the selected anti-cancer formulations at the simple average of prices of all brands holding at least one per cent of market share
  • D. Permitting manufacturers of the selected anti-cancer medicines a 30 per cent margin over the cost of production while fixing the retail price of a new drug

Q5. The National List of Essential Medicines, 2022 was drawn up and released by which one of the following?

  • A. The Ministry of Health and Family Welfare
  • B. The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers
  • C. The National Pharmaceutical Pricing Authority, an attached office of the Government of India
  • D. The Central Drugs Standard Control Organisation, the national drug regulatory authority

Q6. With reference to the National List of Essential Medicines (NLEM), 2022, consider the following statements: 1. It contains 384 medicines grouped into 27 therapeutic categories. 2. It added 34 medicines and deleted 26 medicines as compared with the NLEM, 2015. 3. It includes 63 anti-cancer medicines, counting immunosuppressives and medicines used in palliative care. 4. Medicines drawn from it into Schedule I of the DPCO, 2013 have their ceiling prices fixed by the NPPA on a cost-of-production-plus-margin basis. Which of the statements given above is/are NOT correct?

  1. It contains 384 medicines grouped into 27 therapeutic categories.
  2. It added 34 medicines and deleted 26 medicines as compared with the NLEM, 2015.
  3. It includes 63 anti-cancer medicines, counting immunosuppressives and medicines used in palliative care.
  4. Medicines drawn from it into Schedule I of the DPCO, 2013 have their ceiling prices fixed by the NPPA on a cost-of-production-plus-margin basis.
  • A. 1 and 3
  • B. 2 and 4
  • C. 4 only
  • D. 3 and 4

Q7. In September 2026, while calling the pricing of essential cancer medicines a 'broad daylight dacoity', the Supreme Court cited a cancer medicine supplied to retailers at about ₹2,700. Its printed maximum retail price was approximately how many times the price to the retailer?

  • A. Three times
  • B. Five times
  • C. Ten times
  • D. Twenty times

Q8. The 2026 observation describing the overpricing of essential cancer medicines as a 'broad daylight dacoity' against patients was made by a Supreme Court Bench comprising which one of the following?

  • A. Justices Vikram Nath and Sandeep Mehta
  • B. Justices Surya Kant and Ujjal Bhuyan
  • C. Justices B.V. Nagarathna and Satish Chandra Sharma
  • D. Justices J.B. Pardiwala and R. Mahadevan

Q9. After customs duty and GST on Trastuzumab Deruxtecan, Osimertinib and Durvalumab were lowered in 2024, the Office Memorandum issued by the National Pharmaceutical Pricing Authority required the concerned companies to do which one of the following?

  • A. Obtain the prior approval of the Authority before fixing the retail price of any new formulation containing these three molecules
  • B. Limit any future rise in the price of these formulations to 10 per cent of the price prevailing in the preceding twelve months
  • C. Cap at 30 per cent the margin between the price at which these formulations are supplied to stockists and their retail price
  • D. Revise the maximum retail price of these formulations downwards so that the benefit of the lower duties and taxes reaches the consumer

Q10. With reference to fiscal measures taken on anti-cancer medicines in India, consider the following statements: 1. In July 2024 the basic customs duty on Trastuzumab Deruxtecan, Osimertinib and Durvalumab was reduced to nil. 2. The 54th meeting of the GST Council reduced the GST rate on these three anti-cancer drugs from 12 per cent to 5 per cent. 3. The 56th meeting of the GST Council in 2025 raised the rate on these three drugs from 5 per cent back to 12 per cent, while exempting 33 other lifesaving medicines. Which of the statements given above is/are correct?

  1. In July 2024 the basic customs duty on Trastuzumab Deruxtecan, Osimertinib and Durvalumab was reduced to nil.
  2. The 54th meeting of the GST Council reduced the GST rate on these three anti-cancer drugs from 12 per cent to 5 per cent.
  3. The 56th meeting of the GST Council in 2025 raised the rate on these three drugs from 5 per cent back to 12 per cent, while exempting 33 other lifesaving medicines.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q11. How many classes of commodities — drugs and edible oils being among them — currently stand notified as essential commodities under the Essential Commodities Act, 1955, the Act under which drug price control is exercised?

  • A. Three
  • B. Seven
  • C. Nine
  • D. Eleven

Q12. With reference to the institutional mechanisms available to consumers against overcharging for medicines in India, consider the following: 1. Pharma Jan Samadhan — an online system of the NPPA for reporting complaints of overcharging and non-availability of medicines. 2. Pharma Sahi Daam — a platform providing consumers access to the prices of scheduled as well as non-scheduled medicines. 3. Price Monitoring and Resource Units — units set up by the NPPA in States and Union Territories under its consumer awareness, publicity and price monitoring scheme. 4. CPGRAMS — a grievance portal maintained by the Central Drugs Standard Control Organisation exclusively for complaints about medicine prices. Which of the above is/are correctly identified?

  1. Pharma Jan Samadhan — an online system of the NPPA for reporting complaints of overcharging and non-availability of medicines.
  2. Pharma Sahi Daam — a platform providing consumers access to the prices of scheduled as well as non-scheduled medicines.
  3. Price Monitoring and Resource Units — units set up by the NPPA in States and Union Territories under its consumer awareness, publicity and price monitoring scheme.
  4. CPGRAMS — a grievance portal maintained by the Central Drugs Standard Control Organisation exclusively for complaints about medicine prices.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 3
  • D. 1, 2 and 4