Centre To Cap Trade Margins At 30 Per Cent Of MRP For 110 Anti-Cancer Drugs, Including 35 Patented Medicines

Centre To Cap Trade Margins At 30 Per Cent Of MRP For 110 Anti-Cancer Drugs, Including 35 Patented Medicines

The Centre has capped trade margins at 30% for 110 non-scheduled anti-cancer medicines, with some MRPs potentially falling by up to 70%. The measure covers branded, generic, domestic and imported drugs and is expected to save patients around Rs 2,500 crore annually. It follows Supreme Court concerns over steep mark-ups on cancer medicines.

Amit SrivastavaUpdated: Friday, October 09, 2026, 02:09 AM IST
Centre To Cap Trade Margins At 30 Per Cent Of MRP For 110 Anti-Cancer Drugs, Including 35 Patented Medicines
The government’s trade margin cap is expected to reduce prices of 110 non-scheduled anti-cancer medicines across India | AI Generated Representational Image

Mumbai, October 8, 2026: The Centre has announced a 30% cap on trade margins for 110 non-scheduled anti-cancer medicines, a move that could reduce the maximum retail price (MRP) of some drugs by up to 70% and save patients an estimated Rs 2,500 crore annually.

Move Follows Supreme Court Concerns

The move comes days after the Supreme Court raised serious concerns over steep mark-ups on cancer medicines, citing a case where a drug bought by a retailer for around Rs 2,700 was being sold at an MRP of Rs 27,000. The court had questioned the government over such wide price differences and asked whether a uniform margin could be considered for medicines.

The new measure will cover branded and generic medicines, as well as domestic and imported anti-cancer drugs. Of the 110 medicines covered, 35 are patented, according to officials.

The government said the measure is aimed at improving transparency in drug pricing and reducing the out-of-pocket burden on cancer patients. The actual reduction in MRP, however, will vary depending on the existing trade margins of individual medicines.

Trade Margin Policy Expanded

The decision expands the Centre's trade-margin rationalisation policy. In 2019, trade margins on 42 non-scheduled anti-cancer medicines were capped at 30%, resulting in price reductions for 526 brands and estimated annual savings of around Rs 984 crore for patients.

The latest intervention is significant as non-scheduled medicines are not subject to the same ceiling-price mechanism as scheduled drugs, giving the government another route to regulate excessive mark-ups in the cancer-drug supply chain.

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Cancer Burden Remains High

India recorded an estimated 14.6 lakh new cancer cases in 2022, with the number projected to rise to around 15.7 lakh in 2025, according to ICMR-NCDIR estimates.

Maharashtra alone accounted for 1.22 lakh estimated cases in 2022. Mumbai remains a major cancer-care hub, with Tata Memorial Hospital registering 35,705 patients in 2025, while ACTREC in Kharghar registered another 8,970.

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