Centre to cap trade margins on non-scheduled cancer drugs to 30% of MRP
The Indian government is capping trade margins on non-scheduled anti-cancer drugs at 30% of the MRP to reduce out-of-pocket expenses for patients. This move follows data showing excessive mark-ups in the pharmaceutical market and aims to save consumers approximately ₹2,500 crore annually.
Why it matters
This is a major public health intervention aimed at making life-saving treatments more accessible to the general population.
In a bid to make cancer treatment more affordable and reduce patients’ out-of-pocket expenditure, the Union government has decided to cap trade margins at 30% of the maximum retail price (MRP) for all non-scheduled anti-cancer drugs .
The measure will cover branded and generic drugs , domestically manufactured and imported medicines, and patented and non-patented products. An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines to be brought under the measure.
The National Pharmaceutical Pricing Authority (NPPA), which analysed market data, found that the average trade mark-up on non-scheduled anti-cancer medicines was around 170%, with mark-ups reaching up to 700% in some cases. It also found substantial differences between prices charged through retail, hospital, and online pharmacies.
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