The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, has implemented Trade Margin Rationalisation (TMR) for 137 non-scheduled anti-cancer drugs to address excessive trade margins and improve affordability of cancer treatment. The intervention caps trade margins at 30% of Maximum Retail Price (MRP) under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, and is expected to reduce MRP of these drugs by up to 70% depending on existing price structures.
The measure builds on NPPA's successful 2019 pilot TMR exercise that capped trade margins at 30% for 42 anti-cancer drugs, resulting in MRP reductions of up to 90% across 526 brands. The current list of 137 drugs was recommended by an Expert Committee under the Directorate General of Health Services (DGHS) comprising leading oncologists, medical specialists, and hospital experts, and will be updated periodically.
Implementation requires manufacturers to inform NPPA of revised prices within 7 days of the October 17, 2026 Gazette notification, with revised prices becoming effective from November 9, 2026. Manufacturers must display price lists on their websites and disseminate to all retailers and hospitals, who must charge reduced prices and display them prominently from the effective date. Hospitals receiving direct supplies are specifically responsible for ensuring revised pricing.
State Drug Controllers will enforce compliance by manufacturers, dealers, retailers, hospitals, and medical institutions. The initiative aims to control excessive distribution margins while safeguarding manufacturer revenues and preventing artificial shortages, requiring pharmaceutical companies to maintain current production and supply levels. Consumers can verify revised prices through the Pharma Sahi Daam app and NPPA website.