Indian Government Files Affidavit on Drug Pricing in Supreme Court
The Indian government has submitted an affidavit to the Supreme Court, proposing to limit trade margins on cancer drugs to 30% of MRP.
New Delhi, October 23 (Daily Kiran) : The Indian government has submitted an affidavit to the Supreme Court regarding drug pricing. In this document, the government announced its decision to cap trade margins on non-scheduled cancer medications at 30% of the Maximum Retail Price (MRP).
To implement this initiative, the government has formed an expert committee to identify the cancer drugs that will be affected. On October 9, 2026, the Ministry of Health and Family Welfare established this committee, led by the Director-General of Health Services. The committee has been tasked with delivering its report within 10 to 15 days.
Once the expert committee’s findings are available, the National Pharmaceutical Pricing Authority (NPPA) will consider the recommendations and issue necessary directives. The government anticipates that this measure could reduce the MRP of certain cancer medications by 20% to 70%, potentially saving patients around ₹2,500 crores annually.
The central government has previously taken steps to regulate the prices of various drugs and medical products. In its affidavit, it acknowledged awareness of the issue where hospitals charge excessively for medications and medical supplies, and it is actively seeking solutions to address this problem.
Despite the presence of several companies manufacturing low-cost medications in India, patients often face high prices. Many patients lack the ability to negotiate costs in hospitals and are frequently unaware of the actual prices or cheaper alternatives available. Consequently, some hospitals charge up to 700% more for cancer drugs.
