Centre tells Supreme Court trade margins of all anti-cancer drugs to be regulated

The Centre has decided to regulate trade margins on anti-cancer drugs, a move aimed at controlling cancer drug prices and improving access to treatment. The decision was considered at the National Pharmaceutical Pricing Authority’s (NPPA) 151st meeting on October 8, 2026. An expert committee has been set up to recommend the list of cancer medicines that will come under the price regulation, with its report due within 15 days. 

The government will notify the approved list, which may be updated periodically to cover additional medicines as market conditions and public health needs change. The development comes as the Centre files a detailed affidavit in the Supreme Court in the cancer drug pricing case.

The Health Ministry told the Supreme Court that a 30% trade margin cap has applied to 42 selected non-scheduled anti-cancer medicines since 2019. Under this mechanism, the maximum retail price (MRP) cannot exceed the permitted margin over the price to the retailer.

The Centre said the NPPA introduced the pilot through a notification dated February 27, 2019. It was cautious



about the impact of price intervention on the availability of medicines and access to treatment.

Since then, the government has held multiple rounds of consultations with stakeholders. Micro, small and medium enterprises (MSMEs) and generic drug manufacturers have raised concerns about the Trade Margin Rationalisation (TMR) system, including drug production costs, sales and supply to remote areas.

The government said cancer medicines require special consideration because delays in their availability can affect treatment. It therefore held extensive consultations to avoid shortages of these critical drugs.

The list of medicines covered by the new regulation will be based on government approval for cancer treatment in India. It may be revised periodically as market developments and public health considerations change.

The Centre has filed a detailed affidavit in the Supreme Court in the cancer drug pricing case. The hearing has been adjourned to October 27 at the request of the Additional Solicitor General (ASG).