Cancer drug prices may fall up to 70% as govt caps trade margins
Proposed 30% trade margin cap on non-scheduled cancer medicines could help patients save ₹2,500 crore annually
- Oct 9, 2026,
- Updated Oct 9, 2026 4:36 PM IST
The government has approved a proposal to cap trade margins on identified non-scheduled anti-cancer medicines at 30% of the maximum retail price (MRP), a move that could bring down the cost of cancer treatment for patients.
The National Pharmaceutical Pricing Authority (NPPA) estimates that the measure could reduce MRPs by 20-70%, depending on the existing trade structure and mark-up of individual medicines, and result in annual savings of around ₹2,500 crore for patients.
The move follows an NPPA analysis that found an average trade mark-up of around 170% on non-scheduled anti-cancer medicines, with mark-ups reaching 700% in some cases. The regulator also found significant differences in transaction prices across retail pharmacies, hospital pharmacies and e-pharmacies.
India’s anti-cancer medicines market comprises around 225 drugs and 500 formulations, with annual sales of about ₹12,500 crore. Scheduled cancer medicines account for around ₹2,250 crore and are already subject to price control. The proposed intervention will cover medicines in the non-scheduled segment.
The list of medicines covered by the new pricing mechanism has not yet been finalised. The Department of Pharmaceuticals has asked the Ministry of Health and Family Welfare to constitute an expert committee under the Directorate General of Health Services to recommend the list. The committee has been asked to submit its report by October 14.
The NPPA will implement the measure under Paragraph 19 of the Drugs (Prices Control) Order, 2013, once the list is finalised. The Authority has said excessive trade mark-ups and their impact on patients warrant intervention in the public interest.
The government is building on its 2019 intervention, when trade margins on 42 selected non-scheduled anti-cancer drugs were capped at 30%. The exercise resulted in MRP reductions of up to 91% across 526 brands and annual savings of around ₹984 crore, according to NPPA.
The Organisation of Pharmaceutical Producers of India (OPPI) welcomed the proposal. "OPPI welcomes the Government’s Trade Margin Rationalisation (TMR) initiative aimed at improving the affordability and accessibility of cancer medicines for patients across India. We support measures that help reduce the treatment burden on patients while ensuring continued access to quality therapies," said Anil Matai, Director General, OPPI.
Matai said implementation should maintain a "balanced and predictable environment" that supports patient access, healthcare-system sustainability and the continued introduction of innovative treatments.
Separately, Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India, said the recent GST changes could ease working-capital pressures for pharmaceutical companies. "Together, the changes would address working capital challenges, cost of blocked ITC credits, avoidable disputes and materially improve cash flows across manufacturers and exporters in the Pharma sector," Jaising said.
For drugmakers, the impact of the cancer pricing measure will depend on which medicines make the final list and their existing trade structures. The government has also directed manufacturers of medicines covered by the exercise to maintain current production levels to ensure availability.
The proposed measure will cover identified non-scheduled anti-cancer medicines across branded and generic products, as well as domestically produced and imported medicines.
The government has approved a proposal to cap trade margins on identified non-scheduled anti-cancer medicines at 30% of the maximum retail price (MRP), a move that could bring down the cost of cancer treatment for patients.
The National Pharmaceutical Pricing Authority (NPPA) estimates that the measure could reduce MRPs by 20-70%, depending on the existing trade structure and mark-up of individual medicines, and result in annual savings of around ₹2,500 crore for patients.
The move follows an NPPA analysis that found an average trade mark-up of around 170% on non-scheduled anti-cancer medicines, with mark-ups reaching 700% in some cases. The regulator also found significant differences in transaction prices across retail pharmacies, hospital pharmacies and e-pharmacies.
India’s anti-cancer medicines market comprises around 225 drugs and 500 formulations, with annual sales of about ₹12,500 crore. Scheduled cancer medicines account for around ₹2,250 crore and are already subject to price control. The proposed intervention will cover medicines in the non-scheduled segment.
The list of medicines covered by the new pricing mechanism has not yet been finalised. The Department of Pharmaceuticals has asked the Ministry of Health and Family Welfare to constitute an expert committee under the Directorate General of Health Services to recommend the list. The committee has been asked to submit its report by October 14.
The NPPA will implement the measure under Paragraph 19 of the Drugs (Prices Control) Order, 2013, once the list is finalised. The Authority has said excessive trade mark-ups and their impact on patients warrant intervention in the public interest.
The government is building on its 2019 intervention, when trade margins on 42 selected non-scheduled anti-cancer drugs were capped at 30%. The exercise resulted in MRP reductions of up to 91% across 526 brands and annual savings of around ₹984 crore, according to NPPA.
The Organisation of Pharmaceutical Producers of India (OPPI) welcomed the proposal. "OPPI welcomes the Government’s Trade Margin Rationalisation (TMR) initiative aimed at improving the affordability and accessibility of cancer medicines for patients across India. We support measures that help reduce the treatment burden on patients while ensuring continued access to quality therapies," said Anil Matai, Director General, OPPI.
Matai said implementation should maintain a "balanced and predictable environment" that supports patient access, healthcare-system sustainability and the continued introduction of innovative treatments.
Separately, Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India, said the recent GST changes could ease working-capital pressures for pharmaceutical companies. "Together, the changes would address working capital challenges, cost of blocked ITC credits, avoidable disputes and materially improve cash flows across manufacturers and exporters in the Pharma sector," Jaising said.
For drugmakers, the impact of the cancer pricing measure will depend on which medicines make the final list and their existing trade structures. The government has also directed manufacturers of medicines covered by the exercise to maintain current production levels to ensure availability.
The proposed measure will cover identified non-scheduled anti-cancer medicines across branded and generic products, as well as domestically produced and imported medicines.