Government approves cap on margins of non-scheduled anti-cancer drugs at 30% of MRP; NPPA to notify after DGHS expert committee finalises the list
The Government has approved a cap on the margins charged in the supply and sale of non-scheduled anti-cancer drugs, limiting them to 30% of the Maximum Retail Price, according to a Department of Pharmaceuticals release of 8 October 2026. An expert committee under the Directorate General of Health Services will finalise the list of medicines, after which NPPA will take a decision and issue the notification. Manufacturers of these drugs will be required to maintain their current production levels.
Key facts
- In force
- Not stated; cap to apply after NPPA issues its notification
- Who it affects
- Manufacturers, importers, distributors, hospital, retail and online pharmacies dealing in non-scheduled anti-cancer drugs; cancer patients
- Source
- PIB release, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, 8 October 2026 ↗
- What it is
- Relief
- Section
- Licences
- Published
- 8 October 2026
In 30 seconds
- Margins in the supply and sale of non-scheduled anti-cancer drugs are to be limited to 30% of the Maximum Retail Price (MRP).
- An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines; NPPA will then take a decision and issue the notification.
- The cap will cover non-scheduled anti-cancer medicines across categories: branded and generic, domestically produced and imported, patented and non-patented.
- Manufacturers of non-scheduled anti-cancer drugs will be required to maintain their current production levels.
- The Government expects medicine prices to fall by up to 70% and cancer patients to save ₹2,500 crore annually.
- The release gives no date for the notification or for the cap to take effect.
हिंदी में सार
सरकार ने गैर-अनुसूचित (non-scheduled) कैंसर-रोधी दवाओं की आपूर्ति और बिक्री में लिए जाने वाले मार्जिन पर सीमा को मंज़ूरी दी है — मार्जिन MRP के 30% तक सीमित रहेगा। DGHS के अधीन एक विशेषज्ञ समिति दवाओं की सूची तय करेगी, उसके बाद NPPA निर्णय लेकर अधिसूचना जारी करेगा; लागू होने की तारीख़ रिलीज़ में नहीं दी गई है। निर्माताओं को मौजूदा उत्पादन स्तर बनाए रखना होगा। सरकार के अनुसार इससे दवाओं के दाम 70% तक घट सकते हैं और मरीज़ों को सालाना ₹2,500 करोड़ की बचत होने की उम्मीद है।
Before and now
From February 2019, trade margins capped by NPPA on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013.
A wider cap approved: margins limited to 30% of MRP on non-scheduled anti-cancer medicines across categories, with the list to be finalised by a DGHS expert committee and notified by NPPA.
What has been approved
According to a release of the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, dated 8 October 2026, the Government has approved a cap on the margins charged in the supply and sale of non-scheduled anti-cancer drugs. These margins will be limited to 30% of the Maximum Retail Price (MRP).
Essential cancer medicines in the scheduled list are already subject to government-set ceiling prices. The new decision extends price protection to non-scheduled cancer medicines, which are outside that list, by limiting the margins added before they reach patients.
The steps still to come
- An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines to be covered.
- The National Pharmaceutical Pricing Authority (NPPA) will then take a decision and issue the notification.
The release does not give a date for either step, and does not say from when the cap will apply.
Scope and conditions
| Point | What the release says |
|---|---|
| Margin cap | 30% of MRP |
| Drugs covered | Non-scheduled anti-cancer medicines; the list is to be finalised by the DGHS expert committee |
| Categories | Branded and generic, domestically produced and imported, patented and non-patented |
| Condition on manufacturers | Required to maintain their current production levels |
| Expected price reduction | Up to 70% |
| Expected saving for patients | ₹2,500 crore annually |
Why the Government acted
NPPA’s analysis of market data found that non-scheduled anti-cancer medicines carry an average price mark-up of approximately 170%, reaching 700% or more in some cases. Prices also vary significantly depending on whether the medicine is bought from a retail pharmacy, a hospital pharmacy or an online pharmacy.
The release says State authorities, including those in Maharashtra, Rajasthan and Karnataka, along with patients and civil society, have raised concerns about excessive medicine prices, particularly the gap between the price at which medicines are purchased for sale and the MRP charged to consumers. It states that the new cap will curb excessive profiteering and address unfair pricing practices in the market.
The 2019 precedent
In February 2019, on the Government’s direction, NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013. The release says that decision reduced MRPs by up to 91%, with reported annual savings of ₹984 crore across 526 brands. The wider cap now approved builds on that experience.
What this means for the trade
Nothing changes in prices until NPPA issues its notification. Manufacturers, importers, distributors, hospital pharmacies, retail and online pharmacies dealing in non-scheduled anti-cancer medicines should watch for two things: the list finalised by the DGHS expert committee, and the NPPA notification, which will carry the operative terms. Manufacturers should also note the stated requirement to maintain current production levels. The release does not explain how the 30% margin is to be computed across the supply chain; that detail would have to come from the notification.
Questions and answers
What is the new cap on cancer medicine margins?
The Government has approved a cap on the margins charged in the supply and sale of non-scheduled anti-cancer drugs. These margins will be limited to 30% of the Maximum Retail Price (MRP).
Which cancer medicines are covered?
Non-scheduled anti-cancer medicines across categories: branded and generic, domestically produced and imported, and patented and non-patented. The exact list will be finalised by an expert committee under the Directorate General of Health Services.
When will the cap take effect?
The release does not give a date. It says the DGHS expert committee will finalise the list of medicines, and NPPA will then take a decision and issue the notification.
Is there any condition on manufacturers?
Yes. To ensure the medicines remain available, manufacturers of non-scheduled anti-cancer drugs will be required to maintain their current production levels.
Was a similar cap imposed earlier?
Yes. In February 2019 NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013. According to the release, that reduced MRPs by up to 91%, with reported annual savings of ₹984 crore across 526 brands.
Published 8 October 2026. Updated 14 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.