Trade margins on 137 anti-cancer medicines capped at 30% of the maximum retail price

Why in News?

On 17 October 2026, the National Pharmaceutical Pricing Authority (NPPA) capped the trade margin on 137 non-scheduled anti-cancer medicines, including patented drugs, at 30% of their maximum retail price (MRP). The revised prices will take effect from 9 November 2026.

Key Features of the Decision

• Coverage: 137 non-scheduled anti-cancer medicines, including patented medicines.
• Trade margin cap: The trade margin cannot exceed 30% of the MRP, excluding GST.
• GST: Applicable GST is charged over and above the MRP.
• Recommendation: The decision was taken on the recommendation of an Expert Committee constituted under the Directorate General of Health Services (DGHS).
• Objective: To improve the affordability and accessibility of essential life-saving cancer medicines.

What is Trade Margin?

• Trade margin is the difference between the price charged by a manufacturer to a stockist or distributor and the MRP paid by the patient, excluding GST.
• Trade Margin Rationalisation (TMR) seeks to control excessive margins across the medicine distribution chain and reduce prices for consumers.

Regulation of Medicine Prices in India

The Government regulates medicine prices under the Drugs (Prices Control) Order (DPCO), 2013, issued under the Essential Commodities Act, 1955.

DPCO, 2013 broadly classifies medicines into two categories:

1. Scheduled Medicines:

• Included in the First Schedule of DPCO, which is based on the National List of Essential Medicines (NLEM).
• The Government fixes a ceiling price for these medicines.
• NLEM 2022 contains 388 medicines, including 63 anti-cancer medicines.

2. Non-Scheduled Medicines:

• Not included in the First Schedule of DPCO.
• Their prices are subject to monitoring rather than a government-fixed ceiling price.
• Under Paragraph 20 of DPCO, 2013, manufacturers cannot increase the MRP by more than 10% during a 12-month period.
• If the price increase exceeds 10%, the manufacturer must reduce the price to the permissible level.

Source: PIB

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