The Supreme Court has questioned why the Centre's 30 per cent trade-margin cap on drugs is limited to cancer medicines, urging broader controls on medicines and medical devices in view of steep mark-ups in maximum retail prices.
The court's concern
Business Standard reported on October 12 that the court cited sharp differences between manufacturing costs and retail prices of medicines as it pressed the Centre on why price controls should not extend beyond the cancer-drug category. The bench urged the government to consider wider controls for medicines and devices.
The government, on its part, warned of possible supply risks if price caps are extended too broadly, cautioning that manufacturers could withdraw from the market.
What comes next
The petition before the court also seeks mandatory generic prescriptions and wider margin caps. A list of capped drugs is due to be placed before the court, with the next hearing scheduled for October 27.
The case comes amid growing scrutiny of drug pricing in India, where trade margins on some medicines have been a long-standing concern for policymakers and patient groups.
Sources:
Business Standard — business news brief, October 12, 2026
The court's concern
Business Standard reported on October 12 that the court cited sharp differences between manufacturing costs and retail prices of medicines as it pressed the Centre on why price controls should not extend beyond the cancer-drug category. The bench urged the government to consider wider controls for medicines and devices.
The government, on its part, warned of possible supply risks if price caps are extended too broadly, cautioning that manufacturers could withdraw from the market.
What comes next
The petition before the court also seeks mandatory generic prescriptions and wider margin caps. A list of capped drugs is due to be placed before the court, with the next hearing scheduled for October 27.
The case comes amid growing scrutiny of drug pricing in India, where trade margins on some medicines have been a long-standing concern for policymakers and patient groups.
Sources:
Business Standard — business news brief, October 12, 2026
