Prices to drop by up to 70% from next month
KRC TIMES Business Desk
The National Pharmaceutical Pricing Authority (NPPA) issued a Gazette notification on October 17, 2026, implementing Trade Margin Rationalisation (TMR) on 137 non-scheduled anti-cancer medicines. The revised Maximum Retail Prices (MRPs) take effect nationwide on November 9, 2026, and are projected to save patients roughly ₹2,500 crore annually.
How the 30% Cap Works
Previously, because these 137 medicines were “non-scheduled” (outside direct price ceilings), distributors, pharmacies, and hospital chains could add markups ranging from 170% to over 700% between the manufacturer’s factory gate price and the printed MRP.
Invoking emergency public-interest powers under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, the government has restricted the total trade margin—the gap between the Price to Stockist/Distributor (PTS/PTD) and the pre-tax MRP—to a maximum of 30% of the MRP (equivalent to a 42.86% markup on the PTS). While this slashes inflated supply-chain markups by up to 70%, it does not alter the base price charged by the manufacturer.
Implementation & Patient Rights
- Rollout Timeline: Pharmaceutical manufacturers have until October 24 (seven days from the notification) to submit revised price lists to the NPPA. From November 9, 2026, all retail pharmacies, hospitals, and medical institutions must charge the reduced prices.
- Supply Mandate: Manufacturers are legally directed to maintain existing production and supply levels so that lower margins do not trigger artificial market shortages.
- Price Verification: Hospitals and pharmacies are required to publicly display the updated price lists on their premises and websites. Patients and caregivers can verify exact revised MRPs and report overcharging via the NPPA website or the Pharma Sahi Daam mobile app.
