The following are true of National Pharmaceutical Pricing Authority (NPPA) except

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  1. It is a statutory body
  2. It can fund studies regarding pricing of drugs
  3. It monitors drug shortages and takes appropriate action to rectify it
  4. It collects and maintains data regarding the import and export of drugs

Answer (Detailed Solution Below)

Option 4 : It collects and maintains data regarding the import and export of drugs
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Correct Answer: It collects and maintains data regarding the import and export of drugs
Rationale:
  • The National Pharmaceutical Pricing Authority (NPPA) is not responsible for collecting and maintaining data regarding the import and export of drugs. This function generally falls under the purview of other government bodies such as the Directorate General of Foreign Trade (DGFT) or the Ministry of Commerce and Industry.
Explanation of Other Options:
It is a statutory body
  • Rationale: The NPPA is indeed a statutory body, established under the Drugs (Prices Control) Order, 1995, and as per the powers conferred by Section 3 of the Essential Commodities Act, 1955. This body has the authority to regulate the prices of pharmaceutical drugs in India.
It can fund studies regarding pricing of drugs
  • Rationale: The NPPA has the mandate to fund studies and research regarding the pricing of drugs. This is part of its broader role in ensuring the availability and affordability of medicines in India.
It monitors drug shortages and takes appropriate action to rectify it
  • Rationale: One of the key functions of the NPPA is to monitor the availability of drugs and take necessary actions to prevent or rectify drug shortages. This is crucial for maintaining the supply of essential medicines in the country.
Conclusion:
  • Among the given options, the NPPA does not collect and maintain data regarding the import and export of drugs. This responsibility lies with other governmental entities. The NPPA's primary roles include regulating drug prices, funding relevant studies, and monitoring drug availability to prevent shortages.
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