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Supreme Court Questions Steep Mark-Ups on Essential Medicines
The Supreme Court is examining why some essential medicines become much more expensive for patients.
The judges discussed a cancer medicine that reportedly cost retailers about ₹3,000 but was sold for ₹27,000.
They called the difference extremely troubling.
The judges asked why the same 16% retailer margin used in some price rules could not apply more widely.
The Centre said private hospitals may receive much of the extra money rather than drug companies.
The court also said some hospitals make patients buy medicines from their own pharmacies.
When public health programs pay for treatment, taxpayers may eventually pay the bill.
The government will provide more information before the case continues on October 12, 2026.
The Supreme Court questioned why a 16% retailer margin under the Drugs (Prices Control) Order, 2013, should not apply uniformly to essential medicines.
Justice Sandeep Mehta cited an essential cancer drug supplied to retailers for about ₹3,000 but sold to consumers for ₹27,000.
The Centre said private hospitals, rather than pharmaceutical companies, benefit from many steep mark-ups.
The Bench raised concerns that patients are often required to buy medicines from private hospitals’ in-house pharmacies.
The court said inflated prices under government-funded schemes ultimately burden taxpayers and scheduled the next hearing for October 12, 2026.
- Who
- The Supreme Court of India, the Centre represented by Solicitor General Tushar Mehta, and petitioners Kishan Chand Jain and Sanjay Kulshrestha.
- What
- The court questioned steep mark-ups on essential medicines and examined whether drug-price controls should be enforced more strictly.
- Where
- The matter was heard by the Supreme Court of India.
- When
- The hearing took place on September 29, 2026; the next hearing is scheduled for October 12, 2026.
- Why
- The petitions seek more affordable medicines and action against alleged overpricing, while the court is concerned about the burden on patients and taxpayers.
Court and Petitioners
Centre’s Position
Who benefits from mark-ups?
Court and Petitioners
The Supreme Court and petitioners questioned the large gap between prices to retailers and prices paid by consumers, seeking stronger controls on alleged overpricing.
Centre’s Position
The Centre said pharmaceutical companies are not the main beneficiaries and that private hospitals receive the gains from steep mark-ups.
Uniform price controls
Court and Petitioners
The Bench questioned why the 16% retailer margin under the Drugs (Prices Control) Order, 2013, should not be applied uniformly to essential medicines.
Centre’s Position
The Centre asked for time to present details of existing drug-pricing mechanisms and said a solution must balance competing interests.
Hospital medicine purchases
Court and Petitioners
The Bench raised concerns that patients may have little choice when private hospitals insist they buy medicines from in-house pharmacies.
Centre’s Position
The article does not report a specific response from private hospitals to this concern.
Key facts
- Essential drug example
- An essential cancer drug was reportedly supplied to retailers for about ₹3,000 and sold to consumers for ₹27,000.
- Retailer margin
- The Bench questioned whether the 16% margin under the Drugs (Prices Control) Order, 2013, should apply uniformly to essential medicines.
- Centre’s position
- Solicitor General Tushar Mehta said private hospitals, rather than pharmaceutical companies, benefit from steep mark-ups.
- Hospital pharmacies
- The Bench flagged allegations that private hospitals require patients to purchase medicines from their in-house pharmacies.
- Public funding
- The court said inflated treatment costs under government-funded schemes such as Ayushman Bharat are ultimately borne by taxpayers.
- Next hearing
- The matter was posted for further hearing on October 12, 2026.
Quotes
Justices Vikram Nath and Sandeep Mehta
Supreme Court judges hearing petitions concerning drug pricing
“Why not keep the 16% margin on MRP, which is prescribed in the DPCO, on everything? ... Ultimately, the loser is the taxpayer. This is carnage, as simple as that.”
thehindubusinessline.com
“Suppose the patient is taking treatment through government services... The government doesn’t pay, the taxpayer pays. This affects a larger section of society.”
thehindubusinessline.com
Sources
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