Parliamentary Panel Seeks 20% Cap on Medicine Price Gap

The Parliamentary Standing Committee on Health and Family Welfare presented its 176th Report on 7 August 2026 in the Rajya Sabha. The report, titled Affordability and Accessibility of Healthcare Facilities in Public and Private Sector, recommended that the gap between the landing price of a medicine or medical device and its Maximum Retail Price should not exceed 20%.

Landing Price and Maximum Retail Price

Landing price is the entry cost at which a medicine or medical device reaches the market. Maximum Retail Price, or MRP, is the highest price printed on the product pack for sale to consumers. The committee linked wide differences between these two prices with higher out-of-pocket expenditure for patients.

Pricing of Medicines and Medical Devices

The report cited Tenecteplase, a clot-busting drug used in emergency care, as an example of a large price gap. Its landing cost was placed at about ₹18,000, while its MRP was stated at ₹50,000. The panel also called for standardisation of clear aligner prices, which were placed in a range of ₹1.5 lakh to ₹5 lakh.

Quality Standards and Procurement Systems

The committee stated that lower prices should not reduce device quality. It referred to Quality Management Systems such as ISO 13485 and US FDA 21 CFR Part 820 for manufacturers of medical devices. It also recommended centralised, transparent, and tender-based procurement in private empanelled hospitals to limit internal mark-ups on high-end devices and consumables.

Important Facts for Exams

• The Parliamentary Standing Committee on Health and Family Welfare is a standing committee of Parliament that examines subjects related to health policy and healthcare delivery.
• ISO 13485 is an international standard for quality management systems in the medical devices sector.
• US FDA 21 CFR Part 820 is the Quality System Regulation for medical device manufacturers in the United States.
• Coronary stent price caps were introduced in India in 2017, and the report placed the earlier price range at ₹1.9 lakh before the cap.

Price Control in Medical Devices

The report referred to coronary stent price control as a past example of medical price regulation in India. It stated that the cap reduced prices to about ₹25,000 to ₹30,000 and generated estimated annual consumer savings of ₹13,353 crore.