India Pharma Outlook Team | Thursday, 11 June 2026
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The government is considering lifting price caps on key cancer drugs such as cisplatin and carboplatin, a move that could increase prices by up to 50% as authorities respond to rising raw material costs and growing supply shortages.
The Department of Pharmaceuticals (DoP) has granted in-principle approval to invoke Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013—a rarely used provision that allows price revisions beyond standard limits in exceptional circumstances.
The decision comes amid mounting pressure from the pharmaceutical industry and healthcare providers over the viability of producing these essential oncology drugs.
Cisplatin and carboplatin are widely used first-line chemotherapy drugs, critical in treating multiple cancers. However, a sharp increase in the cost of platinum and the core raw material has disrupted production economics, leading to shortages across hospitals.
Tata Memorial Hospital in Mumbai had earlier flagged alarming supply gaps, warning that continued disruption could delay treatments and pose serious risks to patients. Oncologists across the country have echoed similar concerns, highlighting the urgency of restoring stable supply.
Currently, carboplatin is priced at Rs 61.10 per 10 mg/ml vial, while cisplatin ranges between Rs 70 and Rs 300 depending on strength. Despite steady inflation in input costs, price revisions under the DPCO framework have remained limited over the years.
Industry data suggests that active pharmaceutical ingredient (API) costs have surged significantly, driven by higher platinum prices, increased production expenses, and currency fluctuations. Manufacturers have argued that without a price correction, continued production is financially unsustainable.
The National Pharmaceutical Pricing Authority (NPPA) is expected to notify revised prices in the coming days. The DoP has instructed the regulator to assess actual raw material cost increases over the past five years and determine a justified price hike accordingly.
A parliamentary committee guideline suggests a cap of 10% annual price increase, with a maximum 50% hike allowed under exceptional circumstances. However, authorities have indicated that real cost data will take precedence in final decision-making.
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While pharmaceutical companies had sought price hikes for 82 formulations, the government has so far considered revisions for only four—cisplatin, carboplatin, and two anti-tetanus immunoglobulin formulations.
For the remaining applications, additional data has been requested, indicating a cautious and selective approach to price liberalization.
Experts note that the move reflects a broader policy challenge balancing drug affordability with supply sustainability. While price caps are essential for ensuring access, prolonged cost pressures risk disrupting production and availability.
Shyam Aggarwal, chairman of medical oncology at Sir Ganga Ram Hospital, said the government’s willingness to review pricing based on real cost data signals responsiveness to on-ground challenges faced by doctors and patients.
The proposed easing of price caps on critical cancer drugs marks a significant regulatory shift aimed at addressing supply shortages. While it may lead to higher treatment costs, the move is seen as necessary to ensure continued availability of life-saving therapies in India.
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