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Top court seeks 16% MRP cap on medicines

By Sohail Khan 30 September 2026, 1:45 am

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Business News›Industry›Healthcare/Biotech›Healthcare›SC seeks 16% MRP cap on medicines, flags huge cancer drug markups

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SC seeks 16% MRP cap on medicines, flags huge cancer drug markups
Synopsis

The Supreme Court has raised concerns regarding inflated prices of essential medicines, particularly cancer drugs, sold at exorbitant markups. Justices Vikram Nath and SVN Bhatti criticized pharma companies for neglecting the struggles of ordinary people. They urged the government to consider a uniform pricing rule that limits maximum retail prices. The court highlighted the burden on taxpayers due to inflated medical expenses reimbursed under public health schemes.

Why Not Fix Retail Margins at 16% for All Drugs: SC to Govt

New Delhi: The Supreme Court on Tuesday questioned the government over the massive markups on cancer and other drugs, asking it as to why a uniform rule limiting the maximum retail price (MRP) to no more than 16% above the retailer price should not be introduced.

Expressing displeasure on how pharma companies were not bothered about the plight of an ordinary man, a bench comprising justices Vikram Nath and SVN Bhatti said: "We don't know why they (pharma companies) are asked to fix prices like this. This is carnage. Plain and simple."

Also Read: Maharashtra FDA trains guns on overpriced drugs

Noting that a cancer drug of ₹3,520 to retailers was being sold for ₹22,427 to people, the apex court questioned the government on why there is a distinction between essential and non-essential medicines for pricing of drugs under the Drugs (Prices Control) Order. "Why not keep a 16% (retail) margin on MRP (maximum retail price) on everything?" Justice Mehta asked, while highlighting the stark disparity.

"Just see the drastic difference," he observed, while pointed out how corporate hospitals often insist patients purchase from in-house pharmacies, with the inflated costs ultimately borne by taxpayers when treatment falls under government schemes like Ayushman Bharat or other public health programmes.

And if the patient brings it from outside the corporate hospitals, they do not assure treatment, the court said, asking the government "Why should the common man suffer all this. Corporate hospitals are industries; they are not a service at all."

Solicitor General Tushar Mehta, appearing for the government, assured the court that it will "find a way out. Some way that balances equities. As I understand, pharma companies are not the ones benefiting from it," he said.

The apex court then posted the matter for further hearing on October 12, observing that it is more about the ethics of medical practitioners in dealing with their patients.

Also Read: In healthcare, the patient is the least informed consumer

Last week, the SC had taking exception to the large gap between the price to retailer (PTR) and MRP of certain cancer medicines, asking why manufacturers should be permitted to fix MRP several times higher than their actual sale price.

Drug manufacturers and retailers are committing "daylight robbery" by selling essential medicines at inflated prices to patients, the apex court had said, while pointing out that people sell their jewellery to get these medicines.

Such inflated pricing structures result in systemic fraud on public exchequers when medical expenses are reimbursed under state health schemes, said the court. "Hospitals are buying medicines at these prices and then reimbursing from the government. It's ultimately taxpayer's money. There is a clear-cut case of fraud."

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maximum retail price limit on medicinesSupreme Court on drug pricingcancer drug markupspharmaceutical pricing issuesinflated drug pricesayushman bharat reimbursementhealthcare pricing ethics

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