New Delhi, Oct 2026 : In a major move aimed at making cancer treatment more affordable, the government has decided to cap trade margins at 30 per cent of the maximum retail price (MRP) for all non-scheduled anti-cancer medicines, official sources said on Thursday.
The proposed measure is expected to cover a wide range of medicines, including branded and generic drugs as well as products manufactured domestically or imported from overseas. Both patented and non-patented anti-cancer medicines will come under the new framework.
The decision, which is expected to take effect later this month, is aimed at curbing high mark-ups across the pharmaceutical supply chain and reducing the financial burden on cancer patients. The move is particularly significant for patients requiring prolonged treatment, where the cost of medicines can account for a substantial portion of overall healthcare expenditure.
According to government estimates, the initiative will cover around 110 anti-cancer medicines, including 35 patented drugs. Officials estimate that the measure could result in reductions of up to 70 per cent in the MRP of some affected medicines, depending on the existing trade margins.
Under the proposed framework, the trade margin for all non-scheduled anti-cancer medicines will be restricted to 30 per cent of the MRP. The cap will apply irrespective of whether a medicine is branded or generic, produced in India or imported, and whether it is protected by a patent or is a non-patented product.
Government officials said the intervention is intended to address significant variations in trade margins in the pharmaceutical distribution chain. By limiting the margins, the government expects manufacturers, distributors, retailers and other stakeholders to operate within a more controlled pricing structure while maintaining the availability of medicines.
The move is also expected to reduce out-of-pocket expenditure for cancer patients and their families. Cancer treatment often involves repeated cycles of medication, diagnostic tests and clinical consultations, making affordable access to essential drugs an important component of healthcare.
Officials estimate that lower prices could result in annual savings of around Rs 2,500 crore for patients. The government expects the benefits of the trade-margin restriction to be reflected directly in the retail prices of the medicines covered by the policy.
The latest decision builds on measures introduced by the government in 2019, when trade margins for selected anti-cancer medicines were capped as part of efforts to check excessive pricing.
The new framework, however, significantly broadens the scope of the earlier intervention by proposing to bring all non-scheduled anti-cancer medicines within the 30 per cent trade-margin ceiling.
The government expects the expanded measure to improve affordability while ensuring that cancer medicines remain available across the market. If implemented as planned, the policy could provide substantial financial relief to patients and families dealing with the high and often prolonged costs associated with cancer treatment.
