Cancer Drugs Up To 70% Cheaper? What India’s New 30% Margin Cap Means

The government has capped trade margins on non-scheduled anti-cancer medicines at 30% of the maximum retail price (MRP), a move expected to reduce prices by up to 70% and help patients save ₹2,500 crore annually.

According to the Ministry of Chemicals and Fertilisers, the decision aims to curb excessive mark-ups and reduce the financial burden on cancer patients.

While essential cancer medicines on the scheduled list already fall under government-set ceiling prices, the new measure extends protection to non-scheduled drugs.

An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines covered by the measure.

The National Pharmaceutical Pricing Authority (NPPA) will subsequently issue a notification to implement the decision.

The government said cancer incidence in India is rising, with approximately 60 people per lakh population affected.

An NPPA analysis found that non-scheduled anti-cancer medicines carried average mark-ups of around 170%, with some reaching 700% or more.

Prices varied considerably between retail pharmacies, hospital pharmacies and online platforms.

Authorities in Maharashtra, Rajasthan and Karnataka, along with patients and civil society groups, had raised concerns over high prices and the substantial gap between procurement costs and MRPs.

The latest intervention builds on the government’s 2019 decision to cap trade margins on 42 selected non-scheduled anti-cancer medicines under the Drugs (Prices Control) Order, 2013. That measure reduced MRPs by up to 91%, generating reported annual savings of ₹984 crore across 526 brands.

Manufacturers must maintain current production levels to prevent shortages.

The cap, however, covers all branded, generic, imported and domestic non-scheduled cancer drugs, aiming to improve treatment access and affordability.

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