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Supreme Court Rejects Government's 30% Price Cap on Cancer Drugs as Insufficient

The Indian government's proposal to cap profit margins on anti-cancer medications at 30% has drawn criticism from the Supreme Court, which indicated the measure does not adequately address affordability concerns. The court suggested a more comprehensive approach to drug pricing regulation.

LSN India · 12 October 2026

The Supreme Court on Monday expressed dissatisfaction with the Centre's proposal to impose a 30% margin cap on anti-cancer drugs, signalling that the measure falls short of protecting patient interests in accessing life-saving medications at affordable prices. During hearings on pharmaceutical pricing, the government outlined its framework for determining which drugs would be subject to margin restrictions, citing factors including viability, availability, and distribution capabilities. The Centre drew comparisons with existing price controls on essential medicines such as Paracetamol to justify its approach, arguing that uniform restrictions could create supply chain challenges. However, the court's response suggests the bench believes more stringent controls may be necessary to ensure cancer patients are not burdened by prohibitively high costs. The government's proposal represents its latest attempt to balance pharmaceutical industry profitability with public health concerns, a tension that has repeatedly surfaced in courts and policy discussions across India. The exact scope of drugs to be covered under any new pricing regime remains under consideration, with the court expected to issue further directions on the matter.