Cancer Drug Prices: Centre's Affidavit Proposes 30% Margin Cap

The Centre has submitted an affidavit in the Supreme Court proposing that trade margins on non-scheduled cancer drugs be limited to 30 percent of the maximum retail price. The proposal is part of the government's wider effort to make essential medicines more affordable for patients.

An expert committee has been set up to determine which cancer medicines should be brought under the new arrangement. The panel was constituted by the Ministry of Health and Family Welfare on October 9, 2026, with the Director General of Health Services as its head. It has been asked to complete its work and submit a report within 10 to 15 days.

The affidavit states that the NPPA will take up the matter after receiving the committee's findings and will then issue appropriate directions. According to the government, this will help curb unnecessary profits in the pharmaceutical supply chain.

The government projects that the MRP of the relevant cancer drugs could decline by roughly 20 to 70 percent under the proposed system. Annual savings for patients are estimated at around 2,500 crore rupees.

In the affidavit, the Centre said it has already taken several steps to regulate prices of drugs and medical devices. It also acknowledged that hospitals are charging excessive amounts for medicines and medical supplies, and said it is looking for ways to resolve this concern.

The government observed that although many Indian companies manufacture medicines at low cost, patients frequently pay considerably higher prices. Patients typically have limited ability to negotiate with hospitals and are often unaware of fair drug prices or affordable alternatives. Cancer drugs, it noted, are sometimes sold at up to 700 percent above their reasonable cost in certain hospitals.