Supreme Court Questions Exorbitant Drug Markups, Proposes Capping MRP at 16% Above Trade Price

The Supreme Court of India reportedly raised critical questions regarding the wide disparity between the procurement/trade price of non-scheduled medicines and the Maximum Retail Price (MRP) charged to consumers. While essential drugs are regulated under the National Pharmaceutical Pricing Authority (NPPA), non-scheduled drugs often carry significant profit markups. The bench inquired why the government cannot impose a mandatory ceiling capping the MRP of non-scheduled drugs at a fixed margin, specifically suggesting 16% above the price at which the retailer purchases the product.