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What is Pro-rata Pricing ?

April 26, 2017pricing pro-rata

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What is Pro-rata Pricing ?

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Ans. NPPA has issued notification on pro -rata pricing on 27.01.98. According to this notification, the manufacturers of all the scheduled formulation pack sizes different from the notified pack sizes under sub- paragraphs (1) and (2) of the paragraph 9 of the DPCO, 1995, shall have to work out the price for such pack sizes, in respect of tablets and capsules of the same strength or composition packed in different strips or blisters, on pro-rata basis of the latest ceiling price fixed for such formulations under sub-paragraphs (1) and (2) of para 9 of the DPCO, 1995. This was done to ensure that :- manufacturers are not forced to approach frequently for price approvals for different pack sizes and the manufacturers do not change the pack sizes in a bid to remain out of price control.