Centre to cap trade margins on non-scheduled cancer drugs to 30% of MRP
Average trade mark-up on these drugs now around 170%, reaching 700% in some cases; intervention to cut prices by up to 70% of MRP, resulting in cumulative annual savings of ₹2,500 crore for patients
New Delhi, October 8, 2026: The Indian government has announced plans to cap trade margins at 30 percent of the maximum retail price for all non-scheduled anti-cancer drugs, including both branded and generic, domestic and imported, patented, and non-patented medicines. This decision aims to curb excessive mark-ups and make these life-saving medications more affordable.
The move will impact 110 anti-cancer drugs, encompassing 35 patented medicines. The government anticipates an estimated annual saving of Rs 2,500 crore for cancer patients as a result of this trade margin rationalisation (TMR). The Supreme Court had previously raised concerns over the inflated pricing of anti-cancer drugs, with a bench of Justices Vikram Nath and Sandeep Mehta expressing alarm over the substantial difference between the MRP and the price retailers were charged.
The government's decision to implement the trade margin cap appears to be independent of the Supreme Court's case, but sources indicate it has been under consideration since 2019. A committee will be established to finalize the list of affected drugs, which will subsequently be made available in hospitals.
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