The Supreme Court has criticised the wide difference between the manufacturing cost and the maximum retail price (MRP) of essential medicines, including drugs used for cancer treatment. The observations came during the hearing of a petition filed by advocate Kishan Chand Jain.
A Bench of Justices Vikram Nath and Sandeep Mehta cited the example of an injection, “Exmbidia 20 mg”, whose cost was stated to be Rs 3,520 while the printed MRP was Rs 22,437. The court remarked that while regular pharmacies may offer small discounts, corporate hospitals often charge patients the full MRP.
The Bench also noted concerns that patients and families face severe hardship, including situations where bodies are allegedly not handed over until dues are cleared. It pointed out that price caps are fixed only for scheduled medicines in the essential list, while non-scheduled medicines—said to account for over 80% of sales—remain largely unchecked and can see annual price increases of around 10%.
As a possible remedy, the court asked why a law should not be considered to limit the MRP to a 16% profit margin over the retail selling price. The Centre was directed to examine the issue and submit a detailed report, and the matter was adjourned to October 12.
