New Delhi: Cancer drug prices are set to fall after the Centre capped trade margins on 137 non-scheduled anti-cancer medicines at 30% of their maximum retail price (MRP). The National Pharmaceutical Pricing Authority (NPPA) issued the order on October 17, 2026. The revised prices will take effect from November 9, 2026, offering relief to patients facing high treatment costs.
By November 4, 70 companies had reported revised MRPs for 120 drugs. The reported reductions range from 20% to 70% on average, while the highest reduction has reached 96.45%. The estimated savings for patients stand at Rs. 3,357.49 crore. This estimate compares original and revised prices against sales volumes recorded between April 2025 and March 2026.
The order covers patented anti-cancer medicines as well as other non-scheduled drugs. It aims to curb excessive markups across the supply chain, including retail and hospital pharmacies. Moreover, patients and State authorities had raised concerns about the wide gap between manufacturers’ prices and the MRPs charged to consumers.
Patients can check revised medicine prices through the NPPA website and its official Pharma Sahi Daam mobile application. The new MRPs are calculated using average distributor prices recorded in March 2026.
How the 30% trade margin cap changes medicine pricing
Trade margin refers to the difference between the price charged by a manufacturer to a stockist or distributor and the MRP paid by a patient. The calculation excludes Goods and Services Tax (GST). Therefore, excessive margins at different stages of the supply chain can sharply increase the final cost of medicines.
Under the new order, the trade margin cannot exceed 30% of the MRP. The calculation uses the distributor price recorded in March 2026, with GST added separately. Importantly, the restriction applies to all versions of the 137 listed medicines, regardless of dosage or form. It also covers medicines sold individually or in combinations.
The government has invoked its extraordinary powers under Paragraph 19 of the Drugs (Prices Control) Order, 2013. An Expert Committee constituted under the Directorate General of Health Services recommended bringing these medicines under Trade Margin Rationalisation. The decision also builds on a 2019 intervention covering 42 non-scheduled anti-cancer medicines.
The DPCO regulates medicine prices under the Essential Commodities Act. It divides medicines into scheduled and non-scheduled categories. Scheduled medicines appear in the National List of Essential Medicines (NLEM), 2022, and have government-fixed ceiling prices. The list contains 388 medicines, including 63 anti-cancer drugs.
Non-scheduled medicines are subject to price monitoring. Under Paragraph 20 of the DPCO, manufacturers cannot increase their MRP by more than 10% within 12 months. If an increase exceeds that limit, the price must return to the permitted level for the next 12 months.
NLEM guides essential medicine pricing
The NLEM identifies essential medicines based on national healthcare priorities. First introduced in 1996, it has since been revised in 2003, 2011, 2015 and 2022. An expert panel called the Standing National Committee on Medicines prepares the list after consulting medical professionals and specialists. It also considers World Health Organization standards.
The list helps reduce household medical expenses and supports government procurement, hospital budgets and health planning. In addition, it seeks to ensure access to safe, effective and quality medicines. The latest edition, NLEM 2022, was released by Union Health Minister Mansukh Mandaviya on September 13, 2022.
Companies and pharmacies must follow revised prices
Manufacturers must calculate revised MRPs using their average distributor prices from March 2026. However, free medicines supplied through patient assistance programmes and direct government sales are excluded from this calculation. Medicines already selling below the revised price limit cannot become more expensive.
Companies must report revised prices to the NPPA. They must also publish price reductions in newspapers, display them on their websites and inform retailers and hospitals. Meanwhile, the NPPA is publishing updated price details as companies submit their revised rates.
By November 4, 70 companies had reported revised prices covering 1,136 stock keeping units (SKUs) across 120 drugs. Hospitals and chemists must clearly display the revised prices. Furthermore, companies that fail to reduce prices must deposit the excess amount collected, along with interest.
Manufacturers cannot discontinue or reduce production of these medicines without following prescribed rules. They must provide six months’ notice before stopping a medicine completely. These requirements aim to prevent shortages while ensuring patients receive the benefit of lower prices.
Government expands support across cancer care
The trade margin cap adds to several government programmes covering cancer prevention, screening, treatment and affordable medicines. Under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), eligible families receive cashless hospital treatment worth up to Rs. 5 lakh per year. The scheme covers families among the poorest 40% of the population and all senior citizens aged 70 and above.
As of June 30, 2026, the scheme had authorised 12.69 crore hospital admissions worth Rs. 1.92 lakh crore. It covers 1,961 procedures across 27 medical specialties, including medical, surgical and radiation oncology. By November 4, 2026, it had authorised 19.5 lakh medical oncology admissions worth about Rs. 2,926 crore.
The National Programme for Prevention and Control of Non-Communicable Diseases (NP-NCD) supports cancer screening, early diagnosis, referral and treatment. Its network includes 770 district NCD clinics, 6,410 NCD clinics at Community Health Centres and 524 Day Care Cancer Centres.
The government has approved 19 State Cancer Institutes and 20 Tertiary Care Cancer Centres to strengthen advanced treatment facilities. Meanwhile, Tata Memorial Centre has established six hospitals in Varanasi, Visakhapatnam, New Chandigarh, Guwahati, Sangrur and Muzaffarpur. Cancer diagnostic, medical and surgical services have also been extended to all 22 new AIIMS.
The National Cancer Institute at Jhajjar and the second campus of Chittaranjan National Cancer Institute in Kolkata provide advanced diagnostic and treatment facilities. In addition, the programme supports population-based screening and cancer surveillance through the National Cancer Registry Programme of the Indian Council of Medical Research.
Screening and vaccination widen early intervention
Ayushman Arogya Mandirs provide screening for common cancers among people aged above 30. More than 1.86 lakh centres were operational across India as of August 12, 2026. Screening covers oral, breast and cervical cancers, with frontline workers such as ASHAs and ANMs supporting these services.
By July 2026, screening figures had reached 36.11 crore for oral cancer, 16.94 crore for breast cancer and 9.31 crore for cervical cancer. Additionally, the nationwide HPV vaccination campaign was launched on February 28, 2026. It targets around 1.2 crore eligible girls aged 14 across all 36 States and Union Territories. More than 80 lakh vaccine doses had been administered free of cost by September 11, 2026.
Jan Aushadhi and AMRIT expand access to affordable medicines
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) provides affordable medicines through Jan Aushadhi Kendras. Its product range includes 2,110 medicines and 315 surgical items, medical consumables and devices. As of June 30, 2026, India had 20,149 Jan Aushadhi Kendras.
Between 2021-22 and 2025-26, the scheme recorded sales of Rs. 7,873.85 crore. These sales generated estimated savings of about Rs. 37,200 crore for citizens by March 31, 2026.
The AMRIT initiative offers medicines for cancer, cardiac diseases and other serious illnesses at discounted prices. Its network provides more than 6,500 medicines, implants, surgical products and healthcare items, with discounts averaging up to 50% on MRP. Currently, 285 AMRIT outlets operate across 24 States and four Union Territories.
Since its launch, AMRIT has served more than 8.13 crore patients. By September 24, 2026, it had distributed medicines and healthcare products worth around Rs. 22,323 crore at MRP. As a result, patients saved an estimated Rs. 10,969 crore.
The government also provides specialist consultations through the eSanjeevani telemedicine platform, including oncology services. More than 50 crore patients had used the platform for various healthcare services by October 21, 2026.
Together, these measures seek to reduce the financial burden of cancer treatment. The new trade margin cap adds another layer of price regulation. At the same time, existing programmes support patients from early screening to hospital treatment and access to medicines.
