NPPA caps trade margin at 30% on 137 non-scheduled cancer drugs
Why in the news
The National Pharmaceutical Pricing Authority (NPPA) issued a gazette notification on 17 October 2026 limiting trade margins on 137 non-scheduled anti-cancer drugs to 30%, aiming to cut prices for patients.
Key facts
- Cap: trade margin limited to 30% of MRP excluding GST, equal to a 42.86% mark-up on the price to stockist or distributor.
- Decision: approved at NPPA’s 284th meeting on 16 October 2026, based on an expert committee under the Directorate General of Health Services.
- Drugs covered: both patented and off-patent medicines, such as Nivolumab, Olaparib, Denosumab and Topotecan. Supplies under patient assistance programmes are excluded.
- Legal basis: Paragraph 19 of DPCO 2013, which lets NPPA fix prices in extraordinary circumstances in the public interest.
- Impact: MRPs could drop by up to 70%; yearly savings are estimated at ₹2,500 crore. The expert committee found margins of 170% to 700% at some outlets.
- Timeline: revised prices apply from 9 November 2026; firms must report new prices to NPPA within seven days.
| Measure | Drugs | Savings |
|---|---|---|
| 2019 cap | 42 cancer drugs | ₹984 crore a year |
| 2026 cap | 137 cancer drugs | ₹2,500 crore a year (estimated) |
About non-scheduled drugs
Non-scheduled drugs are outside DPCO price ceilings, and makers may raise their prices by up to 10% in any 12 months. They make up an estimated 82% of India’s domestic drug market. Trade margin rationalisation limits the gap between the maker’s price to distributors and the price paid by consumers. Overcharging must be refunded with interest under DPCO 2013 read with the Essential Commodities Act, 1955.
Exam angle
- NPPA was constituted on 29 August 1997 and is an attached office of the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
- A Supreme Court bench has questioned the scheduled versus non-scheduled distinction under DPCO.
- The move is described as a first step towards wider trade margin rationalisation.