14 October,2026 08:21 AM IST | Mumbai | Ritika Gondhalekar
There are growing concerns over the widening gap between the procurement prices of medicines and medical supplies and the amounts ultimately charged to patients. Representation Pic/iStock
With the Supreme Court questioning why a 30 per cent cap on trade margins for cancer medicines cannot be extended to other essential drugs, health activists and consumer activists in the city have welcomed the move.
During a hearing on Monday, the apex court asked the Director General of Health Services (DGHS) to examine which other medicines could be brought under the proposed cap and directed the National Pharmaceutical Pricing Authority (NPPA) to explore how the measure could be implemented for the drugs identified.
The court's intervention comes amid growing concerns over the widening gap between the procurement prices of medicines and medical supplies and the amounts ultimately charged to patients. The Centre has estimated that the proposed cap on cancer medicines could save patients around R2500 crore annually. The matter is scheduled for further hearing on October 27.
Health activists have welcomed the broader scrutiny of medicine pricing, but argue that controlling trade margins alone will not address the financial burden of treatment, particularly in private hospitals, where patients often pay substantial amounts for medicines, consumables, diagnostics, and procedures.
Activist Rajiv Patil said, "We hope that the SC guidelines are taken seriously. We have been highlighting this issue, but no one has paid heed. At present, people get the same medicines at various rates in different pharmacies. How is this possible if the margins are said to be the same? There are many reasons why the costs are so inflated. And considering that medicines are a question of life and death, no one raises questions, and the pharma industry is thriving on that. If this guideline is turned into a regulation and implemented well, it will benefit patients beyond imagination."
He argued that pharmaceutical companies and other players in the supply chain should be allowed reasonable profits rather than excessive margins, underscoring the need for pricing policies that protect patients without compromising the availability of essential medicines.
Consumer activists stated that declaring the product manufacturing should be the first step.
Shirish Deshpande, president of Mumbai Grahak Panchayat, said, "Our purview is not beyond MRP [Maximum Retail Price]. We can take action if someone charges more than the printed MRP. But the MRPs themselves are too inflated.
Now the apex court has kept its finger at the right spot by highlighting the margins. At present, the profit margins have approximately gone up to 1000 per cent in some cases. The SC pointing out that a stent costing Rs 5000 is charged at Rs 25,000 is a matter of shame for the pharma industry. Consumers have been ignoring these expenses because the expenses get covered in their insurance. But what about those who don't have any insurance? And why should one pay hefty charges just because they have insurance?"
October 27
Day next hearing in matter will take place
