The central government has capped the trade margin on all non-scheduled cancer drugs at 30%. This is expected to reduce the MRP of some drugs by up to 70% and save patients ₹2,500 crore annually.
30% trade margin on cancer drugs
Amid the high costs of cancer treatment, the central government has taken a major decision regarding the prices of non-scheduled anti-cancer drugs. The government has decided to impose a 30% cap on the trade margins of all such anti-cancer drugs. According to news agency PTI, this government move could directly impact the prices of cancer drugs, which often involve significant margins at various levels, from manufacturers to distributors and retailers. It is believed that this decision could reduce the MRP of some drugs by up to 70%. This has increased the hope of cancer patients receiving relief from treatment costs.
Whether branded or generic, all medicines are covered.
The government's new decision isn't limited to just one type of cancer drug. It will cover both branded and generic non-scheduled anti-cancer drugs. Similarly, both imported and manufactured drugs in India will be covered. This rule will also apply to both patented and non-patented drugs.
The government says its aim is to reduce the excessive trade mark-ups charged during the sale and distribution of medicines, and to ensure the availability of life-saving cancer drugs despite the lower prices.
Patients will save this much every year.
According to official government estimates, this decision could save cancer patients approximately ₹2,500 crore annually. This could particularly benefit patients who have to take expensive cancer medications for a long time.
Indeed, cancer treatment is often long-term. The combined cost of surgery, chemotherapy, radiation, and medications can be a significant financial burden on families. Therefore, lowering the MRP of medications is expected to reduce patients' out-of-pocket expenses.
The government took such a step in 2019 as well.
This government decision is not the first time it has attempted to impose such a cap on trade margins. Previously, in February 2019, the NPPA imposed a 30% trade margin cap on 42 non-scheduled anti-cancer drugs. According to government data, this move resulted in a nearly 50% reduction in the prices of 526 brands of drugs. Now, the government has decided to extend this model to all non-scheduled anti-cancer drugs.
What is the difference between scheduled and non-scheduled medicines?
Scheduled drugs are those listed in Schedule I of the Drugs (Prices Control) Order (DPCO). The government/NPPA can set ceiling prices for these drugs. As of March 2026, the NPPA had set ceiling prices for 131 scheduled anti-cancer drugs.
Meanwhile, non-scheduled drugs are not included in Schedule I. Even in their case, the MRP isn't completely free. Under the current system, a manufacturer cannot increase the MRP of a non-scheduled drug by more than 10% over the previous 12 months' MRP.
