New Delhi: In a significant move aimed at making cancer treatment more affordable across the country, the Central government has decided to cap the trade margins on all non-scheduled anti-cancer drugs. The trade margin for the supply and sale of these vital medicines has now been restricted to a maximum of 30 per cent of their Maximum Retail Price (MRP).
According to official government estimates, this crucial intervention is expected to bring down the retail prices of certain cancer medications by up to a staggering 70 per cent. This massive reduction is projected to provide immense financial relief to patients and their families, resulting in cumulative annual savings of approximately ₹2,500 crore.
The regulatory decision was prompted by observations of substantial discrepancies in drug prices across various distribution channels, including retail medical outlets, hospital-run pharmacies, and online platforms. By implementing this cap, the authorities aim to crack down on unjustified price hikes, curb excessive profiteering by distributors, and significantly reduce the out-of-pocket expenditure that heavily burdens families fighting the disease.
While the 30 per cent trade margin cap has been approved in principle, the exact inventory of medicines that will fall under this new regulatory framework is yet to be finalised. An Expert Committee, established under the Directorate General of Health Services (DGHS), has been entrusted with the responsibility of identifying the specific non-scheduled cancer drugs that will be included. Following the committee’s recommendations, the National Pharmaceutical Pricing Authority (NPPA) will formalise the decision and issue a final notification.
It is worth noting that essential anti-cancer drugs generally fall under Section 7 of Schedule-I of the Drugs (Prices Control) Order (DPCO), 2013. The medicines not included in this essential list are categorised as ‘non-scheduled’. This is not the first time the government has taken such a step; a similar initiative introduced in 2019 successfully controlled trade margins on over 500 brands, saving patients hundreds of crores every year.
Given that a cancer diagnosis often precipitates severe economic crises for Indian households, this targeted policy intervention serves as a beacon of hope, striving to ensure that life-saving treatments remain both accessible and affordable without disrupting pharmaceutical supply chains.