In a significant decision, the Modi government has announced a 30% cap on trade margins for all non-scheduled anti-cancer medications on 8th October (Thursday). This could lower the maximum retail prices (MRPs) of some cancer medications by as much as 70%. Furthermore, patients would be able to save an estimated Rs 2,500 crore annually. The directive is expected to go into effect in ten days.
Branded and generic medications, alongside domestic and imported, patented and non-patented anti-cancer medications that are not covered by the planned price-control framework are included in the fresh move. The order is anticipated to lower the cost of 110 anti-cancer medications, including 35 patented medications.
According to the centre, the action is intended to reduce excessive trade markups, make life-saving cancer medicines more affordable and guarantee their continuous supply. Patients are going to benefit from lower costs for the impacted anti-cancer medications.
Additionally, the government has presented the action as a component of a larger initiative to provide access to reasonably priced pharmaceuticals, especially for people in need of costly cancer treatment. The latest development expands upon a similar policy that was implemented in 2019, which resulted in a yearly savings of Rs 984 crore across 526 brands.
In a major patient-centric intervention, the Government has decided to cap trade margins at 30% of MRP for all non-scheduled anti-cancer drugs, covering branded and generic, domestic and imported, patented and non-patented medicines. The move addresses excessive trade mark-ups and aims to improve affordability while ensuring continued availability of these life-saving medicines. Expected impact: * Up to 70% reduction in MRP * Estimated annual savings of ₹2,500 crore * Reduced out-of-pocket expenditure for cancer patients Building on the 2019 intervention, which delivered reported annual savings of Rs 984 crore across 526 brands, this measure reinforces the commitment to affordable, accessible and patient-centric healthcare: Official Sources
— ANI (@ANI) October 8, 2026
Currently, a commission led by the Director General of Health Services is creating the list of medications that will be covered under the new framework. Drugs under consideration must be licensed for cancer treatment in India and be widely used, in addition to meeting the main criterion of being pricey.
A Department of Pharmaceuticals official stated, “An important consideration for selecting a medicine is that it should be expensive.” According to the official, extending the 30% cap to less expensive medications would deter businesses from selling them since the regulated margin might not be sufficient to pay marketing and distribution expenses.
Therefore, rather than imposing a blanket restriction that would interfere with the supply and distribution of low-cost medications, the government is trying to focus on the ones where the effect on patients is likely to be highest. The proposal might drastically change the rates of some of the costliest cancer treatments accessible in India if it is carried out as intended.
The Supreme Court had also pointed out the gap between price to retailer (PTR) and MRP of some cancer drugs. Earlier, 42 non-scheduled anti-cancer medications had their trade margins regulated at 30% in 2019 by the National Pharmaceutical Pricing Authority (NPPA).
