Centre Announces Proposed 30 Percent Trade-Margin Cap for Cancer Medicines

The Union government informed the Supreme Court that it had decided to cap trade margins on anti-cancer medicines at 30 percent of maximum retail price.

Background

Solicitor General Tushar Mehta said an expert committee would identify covered medicines, with the list to be updated periodically. The decision followed judicial concern over substantial differences between retail prices and prices charged to dealers.

Legal issue and reasoning

The Bench asked why comparable price controls could not extend to other medicines and medical devices. The proposed cap is a policy measure reported to the Court, not a final price list already implemented.

Consequence and next step

The government must complete the list and related implementation steps. Patients’ actual savings will depend on the notified coverage and enforcement of the pricing measure.