Government Approves Cancer Medicine Trade-Margin Cap

On 8 October 2026, the National Pharmaceutical Pricing Authority (NPPA) approved in principle a 30% trade-margin cap, based on the Maximum Retail Price (MRP), for identified non-scheduled anti-cancer medicines. The proposed measure is projected to reduce prices by 20% to 70% and save patients an estimated ₹2,500 crore annually.

Drug price regulation in India

The Drugs (Prices Control) Order, 2013, provides the framework for regulating the prices of medicines in India. The NPPA administers price controls under this order and fixes ceiling prices for scheduled formulations, which are included in the National List of Essential Medicines. Non-scheduled formulations are not subject to the same ceiling-price mechanism. Under the 2013 order, their manufacturers are generally restricted from increasing the maximum retail price by more than 10% in a year. The new proposal applies a trade-margin cap to identified non-scheduled anti-cancer medicines.

Scope and implementation of the cap

The NPPA approved the proposal at its 151st meeting on 8 October 2026. An expert committee under the Directorate General of Health Services will finalise the list of 110 anti-cancer drugs proposed for coverage, including 35 patented medicines. The NPPA will issue a formal notification after the list is finalised. The NPPA’s analysis found that non-scheduled anti-cancer medicines had an average trade markup of about 170%, with some markups reaching 700%. The proposed 30% cap is based on the MRP of the covered medicines.

Earlier controls and medicine supply

In February 2019, the government capped trade margins on 42 selected non-scheduled anti-cancer drugs. That measure covered 526 brands and generated annual savings of ₹984 crore. Manufacturers of medicines covered by the new proposal have been directed to maintain current production levels.

Important Facts for Exams

• The NPPA is the statutory authority responsible for implementing drug price controls under the Drugs (Prices Control) Order, 2013.
• The 2013 order distinguishes between scheduled formulations, which are subject to ceiling prices, and non-scheduled formulations.
• The proposed list contains 110 anti-cancer drugs, including 35 patented medicines.
• The 2019 trade-margin cap covered 42 selected drugs across 526 brands.

The proposed cap received in-principle approval on 8 October 2026, and the final list and formal NPPA notification remain steps in its implementation. Manufacturers of covered medicines are required to maintain current production levels.