Karnataka seeks wider price caps beyond cancer medicines on other high-cost life-saving drugs

Karnataka has urged the Centre to extend price-control measures beyond cancer medicines to other high-cost, life-saving drugs used to treat cardiac and kidney diseases, following the National Pharmaceutical Pricing Authority’s (NPPA) in-principle approval to cap trade margins on certain non-scheduled anti-cancer medicines at 30% of their maximum retail price (MRP).

Addressing presspersons in Bengaluru, Health Minister U.T. Khader welcomed the move and called for its swift implementation, saying price rationalisation should translate into direct savings for patients. He urged the Union government to extend similar measures to other essential medicines where high treatment costs place a burden on patients.

At its meeting on October 8, the NPPA gave in-principle approval to rationalise trade margins on non-scheduled anti-cancer medicines identified under Paragraph 19 of the Drugs (Prices Control) Order, 2013. The measure is subject to finalisation of the list of medicines to be covered.

The Ministry of Health and Family Welfare has been asked to constitute an expert committee under the Directorate General of Health Services to recommend the anti-cancer medicines to be brought under price control. The committee is expected to submit its report by October 14.

The Centre estimates that the measure could reduce the MRP of several anti-cancer medicines by 20% to 70%, potentially saving patients around ₹2,500 crore.

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Karnataka’s representation to the Centre

In a letter dated September 23 to Union Health Minister J.P. Nadda, the Karnataka government had sought national-level action after inspections in the State found substantial differences between the procurement costs of medicines and the prices charged to patients. The State identified pricing concerns involving 253 medicines and consumables with mark-ups.

Karnataka had sought the inclusion of advanced chemotherapy, targeted therapy and other expensive cancer medicines under the ambit of the Drugs (Prices Control) Order, along with a comprehensive cap on trade margins for high-cost and life-saving medicines.

The State had also called for expanding the NPPA’s price-control oversight, within the applicable legal framework, and strengthening enforcement against excessive charging and profiteering. Other proposals included a national study of medicine prices and an expert committee involving the Centre, States, hospitals, insurers and medical experts.

Disclosure of medicine costs in hospital bills

The State has also sought greater transparency in the prices charged to patients. A circular issued on October 1 asked healthcare institutions to disclose both the purchase or landing cost and the MRP of medicines in patient bills. The instructions are advisory in nature and are proposed to take effect from November 1.

Karnataka’s call follows observations by the Supreme Court questioning why the MRP of essential medicines, including cancer drugs, could not be capped at 16% above the price to retailers, as is applicable to scheduled medicines under the Drugs (Prices Control) Order, 2013.

The State said the proposed 30% trade-margin cap on non-scheduled anti-cancer medicines should be followed by wider action to cover other essential, high-cost medicines, including those used in cardiac and kidney treatment, so that the benefits of price rationalisation reach patients directly.

Published – October 10, 2026 02:17 pm IST