Govt. to cap trade margins at 30% of MRP for cancer drugs

Gist The Union government has decided to cap the trade margins on all non-scheduled anti-cancer drugs at 30% of the maximum retail price MRP . This regulatory intervention aims to curb the exorbitant mark-ups charged by intermediaries in the pharmaceutical supply chain, thereby reducing the crippling out-of-pocket expenditure faced by cancer patients. For civil services aspirants, this development illustrates the government's approach to healthcare affordability and pharmaceutical price regulation outside the traditional essential medicines list. Background Drug pricing in India is monitored and regulated by the National Pharmaceutical Pricing Authority NPPA . Pharmaceuticals are broadly classified into "scheduled" and "non-scheduled" formulations. Scheduled drugs are those included in the National List of Essential Medicines and are subject to strict, direct price ceilings determined by the government. Non-scheduled drugs fall outside this direct price control, allowing manufacturers to price them freely upon launch, though traditional rules cap their annual price increases. Because non-scheduled drugs lack an absolute price ceiling, intermediaries distributors, hospitals, and retailers often exploit the "trade margin"—the difference between the price at which the manufacturer sells the drug and its…