Centre Moves to Curb Cancer Drug Prices, Caps Trade Margins at 30%

The Central Government has approved a 30% ceiling on trade margins for non-scheduled anti-cancer medicines, aiming to make cancer treatment more affordable for patients across the country. According to the Ministry of Chemicals and Fertilizers, the move could bring down the prices of some medicines by up to 70% and help patients save an estimated ₹2,500 crore annually.

Unlike scheduled medicines, which are already covered by government-mandated price ceilings, non-scheduled cancer drugs have not been subject to the same pricing restrictions. The new policy seeks to address this gap by limiting the margins charged throughout the supply and distribution chain.

The National Pharmaceutical Pricing Authority (NPPA) will formally implement the measure after an expert committee under the Directorate General of Health Services identifies the medicines that will come under its ambit.

The decision comes amid growing concerns over the financial burden of cancer care in India. With patients and their families often spending significant amounts on treatment from their own resources, the government expects the new restrictions to check excessive profit margins and improve access to life-saving medicines.

The government had introduced a similar intervention in February 2019, when the NPPA restricted trade margins on 42 selected non-scheduled anti-cancer drugs. The measure led to price reductions of up to 91% in their Maximum Retail Prices (MRPs).

To prevent shortages following the latest decision, manufacturers will be required to maintain existing production levels of non-scheduled anti-cancer medicines, ensuring that efforts to make treatment more affordable do not compromise their availability.