Archive · 9 Oct 2026
India Caps Cancer Drug Trade Margins to Reduce Prices
Cancer medicines can cost patients and families a lot of money.
The government has set a limit on the trade margin for certain cancer drugs.
The margin cannot be more than 30% of the medicine’s maximum retail price.
The rule covers branded and generic medicines.
It also applies to drugs made in India and drugs brought in from other countries.
Both patented and non-patented medicines are included.
The Supreme Court had questioned why some medicines cost much more at retail than they cost retailers to buy.
The article gives an example of a drug bought for about Rs 2,700 and marked with an MRP of Rs 27,000.
The government capped trade margins at 30% of the MRP for all non-scheduled anti-cancer drugs.
The measure applies to branded and generic medicines, and to domestic and imported drugs.
It covers both patented and non-patented medicines.
The Supreme Court questioned the large gap between retailer prices and MRPs for some cancer medicines.
One example cited in court was a drug bought by retailers for about Rs 2,700 with an MRP of Rs 27,000.
- Who
- The government, following scrutiny by the Supreme Court, and sellers of non-scheduled anti-cancer drugs.
- What
- A trade margin cap of 30% of MRP has been set for non-scheduled anti-cancer drugs.
- When
- Recently; no specific date is stated.
- Where
- India.
- Why
- To make cancer medicines more affordable amid concerns about large gaps between retailer prices and MRPs.
- Trade margin cap
- 30% of the MRP
- Medicines covered
- All non-scheduled anti-cancer drugs
- Brand types
- Branded and generic
- Drug sources
- Domestic and imported
- Patent status
- Patented and non-patented
- Example retailer purchase price
- About Rs 2,700
- Example MRP
- Rs 27,000