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Supreme Court Questions Government on Broadening Drug Price Caps
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CNBC TV18•12-10-2026, 15:47
Supreme Court Questions Government on Broadening Drug Price Caps
- •The Supreme Court questioned why the government's decision to cap trade margins on cancer drugs cannot be extended to the entire drug market.
- •Solicitor General Tushar Mehta stated that trade margins on cancer drugs were capped at 30 percent to prevent excessive mark-ups while ensuring reasonable profits for distributors.
- •The government estimates that capping cancer drug margins will generate annual savings of around 2500 crore rupees and improve affordability for patients.
- •The government defended its approach by emphasizing the need to balance price regulation with the continuous availability of medicines.
- •The Supreme Court concluded the hearing and scheduled the next session for October 27.
Key Questions Answered
The Supreme Court questioned why the government's decision to cap trade margins on cancer drugs could not be extended to other medicines, noting that the current measure addresses only a small part of the broader pricing problem.
The government decided to cap trade margins on cancer drugs at 30% to prevent excessive mark-ups while ensuring reasonable margins for distributors and retailers, which is expected to generate annual savings of around ₹2,500 crore.
The Supreme Court concluded the hearing on Monday, October 12, 2026, and scheduled the next hearing for October 27, 2026.
