Centre orders review of hospital consumable pricing after 2,841% markup report

Trade margin regulation was first examined in 2004 by the G.S. Sandhu Committee to address margins exceeding 1,800% on non-scheduled generic medicines. Policy deliberations continued around 2008. In February 2019, the NPPA capped trade margins at 30% for 42 non-scheduled anti-cancer drugs, a move intended to reduce treatment costs for patients.

Mundhe had written to the DoP and the NPPA seeking a review of the survey findings and appropriate action, including the possibility of capping trade margins or bringing essential medical device categories under structured price monitoring.