The government has approved a cap on trade margins for the supply and sale of non-scheduled anti-cancer drugs, limiting them to 30% of their Maximum Retail Price (MRP). According to the Ministry of Chemicals and Fertilizers, the move is expected to reduce medicine prices by up to 70% and help cancer patients save approximately ₹2,500 crore annually.
While essential cancer medicines included in the scheduled list are already subject to government-mandated ceiling prices, the latest decision extends price protection to non-scheduled anti-cancer drugs by restricting trade margins. An expert committee under the Directorate General of Health Services will finalise the list of medicines covered under the measure, following which the National Pharmaceutical Pricing Authority (NPPA) will issue an official notification.
Cancer remains a significant public health concern in India, with the incidence estimated at around 60 cases per lakh population. Treatment costs place a substantial financial burden on patients and their families, many of whom pay a considerable share of medical expenses out of pocket. The ministry said the margin cap aims to curb excessive profiteering, address unfair pricing practices and make cancer medicines more affordable.
In February 2019, following government directions, the NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs, resulting in MRP reductions of up to 91%. To ensure the continued availability of these life-saving medicines under the new measure, manufacturers of non-scheduled anti-cancer drugs will be required to maintain their existing production levels.