CENTRE MOVES TO BREAK CANCER DRUG PRICE BARRIER WITH 30% TRADE-MARGIN CEILING
October 9, 2026
The Union government has approved a 30 per cent cap on trade margins for non-scheduled anti-cancer medicines, in a major intervention aimed at making cancer treatment more affordable and reducing the financial burden on patients and their families.
The measure is expected to bring down the maximum retail prices of some cancer medicines by as much as 70 per cent and generate annual savings of approximately ₹2,500 crore for patients, according to government estimates. The decision covers branded and generic medicines, both domestically manufactured and imported, as well as patented and non-patented drugs.
The new measure targets non-scheduled anti-cancer medicines, which are not covered by the government-mandated ceiling prices applicable to scheduled drugs. An expert committee under the Directorate General of Health Services will finalise the list of medicines covered by the new rules.
The intervention follows growing concerns over steep differences between the prices at which cancer medicines are supplied to retailers and the amounts patients are required to pay. An analysis by the National Pharmaceutical Pricing Authority found that the average trade mark-up on non-scheduled anti-cancer medicines stood at around 170 per cent, with mark-ups reaching as high as 700 per cent in certain cases.
The issue came under renewed scrutiny last week when the Supreme Court questioned the substantial price difference between the procurement cost and retail price of an anti-cancer medicine. The court highlighted an example in which a drug supplied to retailers for ₹2,700 carried a maximum retail price of ₹27,000, raising concerns about excessive mark-ups and the financial hardship faced by patients.
The government’s latest decision builds on an earlier intervention in 2019, when trade margins were capped for 42 selected non-scheduled anti-cancer medicines. That measure reportedly reduced maximum retail prices by as much as 91 per cent and generated annual savings of approximately ₹984 crore across 526 brands.
However, public health advocates have urged caution, particularly regarding expensive patented medicines. They have questioned whether limiting trade margins alone will make certain high-priced treatments genuinely affordable and have called for greater clarity on how the projected annual savings have been calculated.
The new policy seeks to address excessive margins across the medicine supply chain while improving access to essential cancer treatment. Its ultimate impact will depend on the final list of covered drugs, the extent of price reductions and the effectiveness of implementation across the market.
