The central government has taken a significant step to curb the rising prices of cancer drugs. It has decided to cap trade margins on non-scheduled cancer drugs at a maximum of 30 percent. This move is expected to provide substantial relief to cancer patients regarding treatment costs. It is estimated that the prices of certain drugs could drop by up to 70 percent, potentially saving patients around ₹2,500 crore annually.
According to the government, the prices of some cancer drugs escalate manifold across various stages of the supply chain. Capping trade margins will help check arbitrary price hikes, offering relief to patients and their families who are burdened by the high cost of treatment.
Which cancer drugs will the new rule cover?
An expert committee will prepare the list of drugs to be included under the new rule. This measure will apply to both branded and generic medicines, as well as to drugs manufactured domestically and those imported from abroad.
The government has also directed companies to maintain current production levels to ensure the steady availability of medicines. The objective is to control prices while simultaneously ensuring a continuous supply of essential drugs to patients.
Government action in 2019
The central government had previously intervened to regulate cancer drug prices in 2019. Measures taken at that time regarding 526 brands of cancer drugs were estimated to result in annual savings of approximately ₹984 crore.
The decision to cap trade margins on non-scheduled cancer drugs at a maximum of 30 percent is now viewed as the next step in this direction. The government expects this new system to reduce treatment costs for patients and generate annual savings of around ₹2,500 crore. The Supreme Court had also expressed concern over cancer drug prices
The issue of steep hikes in cancer drug prices and the high margins charged by private hospitals was recently raised in the Supreme Court. According to a report from September 30, 2026, the Court expressed concern over the manifold increase in the prices of cancer drugs and questioned the government on the need to take action in this matter.
In this context, the Central Government’s decision is being viewed as a significant step towards making cancer treatment more affordable. However, the extent of the actual price reduction will depend on the inclusion of the relevant drugs in the list and the implementation of the new regulations.
