Supreme Court pushes for trade-margin cap on essential medicines and medical products
On October 12, 2026, the Supreme Court asked why price regulation should be limited to cancer drugs and not extended to all essential medicines and medical products.
Key highlights
Direct fact
On October 12, 2026, the Supreme Court of India asked the Centre to work out modalities for capping trade margins on essential medicines and medical products, after the government said it would cap margins at 30% for non-scheduled cancer drugs.
Key specifics
- The Bench comprised Justices Vikram Nath and Sandeep Mehta.
- The Centre proposed a 30% trade-margin cap for both patented and non-patented cancer medicines.
- The National Pharmaceutical Pricing Authority (NPPA) will examine the expert committee’s recommendations before issuing a price notification.
- The court referred to the 16% retailer margin under the Drugs (Prices Control) Order (DPCO), 2013.
- The Bench cited examples such as a ₹5,000 cardiac stent sold for over ₹25,000 and a saline drip line with MRP ₹11 sold for ₹270.
Exam lens
Economy and governance MCQ angle: DPCO 2013, NPPA, 30% cap, 16% retailer margin, and the Supreme Court’s concern over mark-ups up to 1,000% are the key facts.