Government's Stance on Retailer Margin and MRPs Examined by Judges

During the proceedings, the Solicitor General Tushar Mehta represented the Union Government. He clarified that the Centre is not opposing the petition's proposals but is seeking a balanced pathway after consultations with the relevant authorities.

The government highlighted that the current system allows a 16 percent margin for retailers on schedule medicines, yet non‑schedule medicines lack any price ceiling, enabling manufacturers to set MRPs that are several times higher than the actual market price.

Jain urged the court to treat both schedule and non‑schedule medicines as essential commodities under the Essential Commodities Act, arguing that price regulation should be uniform. He also referenced medical devices such as gloves and syringes as essential items, reinforcing the need for comprehensive price oversight.

The bench agreed that if all medicines fall under the essential‑commodity umbrella, the distinction between schedule and non‑schedule pricing mechanisms must be clearly defined. The judges marked the issue as urgent and set the next hearing for 5 October to explore possible reforms.