Supreme Court Asks Centre to Consider Price Caps on All Essential Medicines

The Supreme Court has questioned why a proposed trade-margin cap on cancer medicines should not be extended to all essential medicines and medical products. A Bench of Justices Vikram Nath and Sandeep Mehta heard the matter on October 12, 2026, after the Centre informed the court of its plan to cap trade margins at 30% for patented and non-scheduled cancer drugs.

Court Observations And Centre's Stand

The judges expressed strong concern over massive price gaps between what retailers pay and the maximum retail price charged to patients, noting that mark-ups on some cancer drugs soar as high as 1,000%. Solicitor General Tushar Mehta told the court that an expert committee led by the Director General of Health Services will identify the cancer drugs to include, while the National Pharmaceutical Pricing Authority will review the recommendations. The Bench argued that limiting the cap only to cancer drugs is inadequate and asked why other medicines cannot follow the 16% retailer margin set under the Drugs Prices Control Order of 2013. Additional Solicitor General Aishwarya Bhati cautioned the court that a uniform cap might lead to lower availability of low-value products in rural areas if retailers find them unprofitable.

Next Steps And Past Actions

The Supreme Court directed the Centre to work out the details for capping medicine prices and set the next hearing for October 27. The Centre stated in its affidavit that the new trade-margin plan could cut anti-cancer drug prices by 20% to 70%, saving patients about ₹2,500 crore a year.

Context

The National Pharmaceutical Pricing Authority handles drug price regulation in India under existing rules. The issue highlights the ongoing policy debate between keeping essential treatments affordable for patients and ensuring that medical supply chains remain profitable enough to keep products stocked.