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DPCO (Drugs Prices Control Order)

The order under which the government fixes ceiling prices for scheduled medicines.

The Drugs Prices Control Order empowers the National Pharmaceutical Pricing Authority to fix ceiling prices for medicines listed as scheduled formulations, broadly those on the National List of Essential Medicines. Non-scheduled formulations are not price-fixed but their annual price increase is capped.

For a retail pharmacy the practical consequences are two. Scheduled products carry lower trade margins than the conventional 20% retailer figure, so applying a standard margin assumption to them produces the wrong purchase price. And ceiling prices are revised periodically, which means old stock and new stock of the same medicine can carry different printed MRPs.

Selling above the notified ceiling price is an offence, and the obligation sits with the seller regardless of what is printed on an older pack.

Because the scheduled list and the ceiling prices both change, treat any published margin rule of thumb as a starting point and reconcile against the actual purchase invoice.

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Related terms

MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. Drug licence (Form 20 / Form 21)The retail licence required to sell medicines in India, issued by the state authority.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.