India is set to provide significant financial relief to cancer patients, with the government introducing a cap on trade margins for 137 additional anti-cancer medicines, a move expected to bring down their prices by up to 70%. The decision comes amid growing concerns over the high cost of cancer treatment and excessive mark-ups charged by hospitals, distributors and pharmacies, which often make life-saving medicines unaffordable for patients.
The move follows intervention by the Supreme Court, which raised serious concerns over the substantial difference between the prices at which cancer medicines are purchased and the amounts ultimately charged to patients. During a hearing, the court pointed out that a life-saving cancer drug supplied to hospitals for around Rs 2,700 was being sold for as much as Rs 27,000. The judges described such excessive mark-ups as a form of exploitation, questioning the financial burden being imposed on patients and their families.
The issue gained prominence following a legal battle initiated by Sarojam Radhakrishnan, a retired bank employee from Kerala who was diagnosed with breast cancer in 2021. Her doctors prescribed targeted cancer treatment, but the monthly cost of the medicines exceeded Rs 63,000, making it difficult for her family to afford the prescribed therapy. Seeking government intervention to regulate the prices of expensive cancer drugs, she approached the Kerala High Court in 2022. The matter subsequently reached the Supreme Court. However, Radhakrishnan died in September 2022, before her legal battle could reach a conclusion.
Investigations by the National Pharmaceutical Pricing Authority (NPPA) reportedly revealed that trade margins on several non-scheduled anti-cancer medicines averaged around 170%, with certain medicines carrying mark-ups of more than 700%. The latest government intervention seeks to address these pricing disparities by restricting the trade margin to 30% of the maximum retail price (MRP) for the 137 identified medicines.
According to the Department of Pharmaceuticals, the initiative is expected to generate annual savings of approximately Rs 2,500 crore for cancer patients across the country. The revised prices are scheduled to come into effect from November 9, 2026. The list includes several widely used medicines, including immunotherapy drugs prescribed for more than 20 types of cancer, as well as medicines used in the treatment of breast, prostate, colon, ovarian and cervical cancers.
The latest decision expands upon an earlier government initiative introduced in 2019, when trade margins on 42 selected non-scheduled anti-cancer medicines were capped at 30%. That intervention resulted in price reductions of up to 90% across 526 medicine brands, providing financial relief to patients. The government has now extended the regulatory framework to cover a larger range of cancer medicines, including branded and generic formulations, as well as domestically manufactured and imported drugs.
The financial implications of cancer treatment remain a major concern in India, particularly for families without comprehensive health insurance. According to studies by the Public Health Foundation of India, healthcare expenditure pushes nearly 55 million people below the poverty line every year. Cancer patients are particularly vulnerable because treatment frequently involves expensive medicines, repeated chemotherapy sessions, radiation therapy and prolonged hospital care.
The financial burden also affects early diagnosis and treatment-seeking behaviour. Many people from economically weaker backgrounds hesitate to undergo diagnostic tests because they fear that a cancer diagnosis could lead to expenses they cannot afford. In some cases, patients discontinue treatment midway after struggling to arrange money for medicines and other medical expenses.
Even government-supported health insurance schemes have limitations when it comes to covering expensive cancer therapies. Under Ayushman Bharat, eligible families receive annual health coverage of Rs 5 lakh. However, the cost of certain advanced cancer medicines can consume a substantial portion of this amount. For instance, a single dose of some breast cancer medicines may cost nearly the entire annual insurance entitlement, while patients m
