- Trade margins capped at 30% for 137 anti-cancer medicines.
- Revised prices come into effect from November 9, 2026.
- Estimated patient savings stand at Rs 3,357.49 crore.
- NPPA reports price reductions of up to 96.45% in the reported medicines.
GG News Bureau
New Delhi, 6th Nov: The government’s cancer drug price cap is set to bring down the cost of 137 non-scheduled anti-cancer medicines, including patented drugs, by limiting trade margins to 30% of their maximum retail price (MRP). The revised prices will come into effect from November 9, 2026, with estimated savings of Rs 3,357.49 crore for patients.
The National Pharmaceutical Pricing Authority (NPPA) issued the order on October 17, invoking its powers under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, to regulate prices in the public interest.
As of November 4, 70 pharmaceutical companies had reported revised MRPs covering 120 drugs and 1,136 stock-keeping units (SKUs). The reported price reductions range from 20% to 70% on average, with the highest reduction reaching 96.45%.
The estimated savings have been calculated by comparing original and revised prices against the volume of medicines sold between April 2025 and March 2026.
How the 30% margin cap will work
Trade margin refers to the difference between the price charged by a manufacturer to a stockist or distributor and the maximum retail price paid by a consumer, excluding GST.
Under the new order, the trade margin on the specified medicines cannot exceed 30%. The revised MRP is calculated using the average distributor price recorded in March 2026.
The restriction applies across different strengths and dosage forms, including tablets and injections, whether medicines are sold individually or in combination. GST will be added separately.
The measure is intended to address concerns raised by state authorities, patients and civil society over the gap between procurement prices and the MRPs charged by retail and hospital pharmacies.
Why the government introduced the measure
Under the DPCO, 2013, medicines are broadly classified as scheduled and non-scheduled drugs. Scheduled medicines listed in the National List of Essential Medicines have government-fixed ceiling prices, while non-scheduled medicines are subject to price monitoring.
The government had earlier introduced a Trade Margin Rationalisation intervention in 2019 covering 42 non-scheduled anti-cancer medicines. The latest order expands the intervention to 137 medicines, including patented drugs.
The NPPA acted under Paragraph 19 of the DPCO, which allows the government to fix or revise drug prices in extraordinary circumstances in the public interest. The decision followed a recommendation from an expert committee constituted under the Directorate General of Health Services.
What patients and pharmaceutical companies need to know
Pharmaceutical companies are required to recalculate MRPs using the prescribed March 2026 distributor prices and report the revised rates to the NPPA. They must also publish the price reductions in newspapers, update their websites and communicate the new prices to retailers and hospitals.
Hospitals and chemists are required to display the revised prices clearly. Medicines already being sold below the newly calculated price limit cannot be made more expensive under the order.
The government has also directed companies not to discontinue production or reduce supplies without following the prescribed requirements. Companies intending to stop manufacturing a medicine must provide six months’ notice.
Consumers can check revised prices through the NPPA website and the official Pharma Sahi Daam mobile application.
Wider support for affordable cancer care
The price intervention comes alongside existing government programmes aimed at reducing the financial burden of cancer treatment.
Under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, eligible beneficiaries receive cashless hospital coverage of up to Rs 5 lakh per family annually. The scheme includes medical, surgical and radiation oncology procedures.
The National Programme for Prevention and Control of Non-Communicable Diseases supports cancer screening, early diagnosis and treatment infrastructure. The government has also expanded screening through Ayushman Arogya Mandirs and provides lower-cost medicines through Jan Aushadhi Kendras and AMRIT outlets.
The new margin cap is intended to address medicine costs directly by limiting markups across the pharmaceutical supply chain. Its impact will become clearer as revised prices take effect and patients begin purchasing the covered medicines at the new rates.
