Karnataka Pushes for Medicine Price Transparency and Trade-Margin Caps

A circular issued on October 1 requires every hospital, clinic, diagnostic centre and medicine retailer in Karnataka to provide patients with an itemised bill that lists, for each medicine, device or consumable, the product name, batch number, manufacturing and expiry dates, the landing (procurement) cost, the maximum retail price (MRP), the price actually charged and applicable taxes. The advisory instruction is slated to take effect on November 1, 2026. The price charged may not exceed the MRP.

Karnataka FDA to withdraw order on drug price chart

The move follows a series of concerns raised by the Supreme Court about large gaps between procurement prices and amounts billed to patients, and a parliamentary committee that flagged similar issues. Karnataka’s Food Safety and Drugs Administration (FDA) highlighted “substantial differences” in its inspections, prompting the state health minister to write to Union Health Minister J.P. Nadda on September 23, 2026, identifying 253 medicines and consumables with questionable mark-ups.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines

Separately, the National Pharmaceutical Pricing Authority (National Pharmaceutical Pricing Authority’s (NPPA)) gave in-principle approval on October 8 to cap trade margins on non-scheduled anti-cancer medicines at 30 % of their MRP. An expert committee under the Directorate General of Health Services is expected to submit its recommendations by October 14.

The Hindu

• The 30 % trade-margin cap is projected to lower MRPs of several anti-cancer drugs by 20 % to 70 %, potentially saving patients around INR2,500 crore.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines

• Examples cited by the state: a medicine with a landing cost of roughly INR3,000 was being sold at INR27,000; an injection costing INR5,000 was billed at INR65,000.

The Hindu

• Karnataka’s inspections uncovered pricing concerns for 253 medicines and consumables.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines

Health Minister **U.T.

Karnataka hospitals must reveal medicine prices from November 1

The NPPA’s in-principle approval signals a willingness to regulate trade margins, while the pending expert committee report will determine which anti-cancer medicines are finally covered.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines

One source reports that the Karnataka FDA will withdraw the disclosure order within days, citing a pending decision by the NPPA. Other reports confirm the circular remains advisory and is scheduled to be implemented on November 1, 2026. No definitive statement from the NPPA on the order’s status has been published, leaving the final outcome uncertain.

Karnataka FDA to withdraw order on drug price chart

• “We appreciate the Karnataka Government's efforts to bring greater transparency to healthcare billing and trade margins,” — Rajiv Nath, forum coordinator at AiMeD

Karnataka becomes first state to expose medicine mark-ups, orders hospitals to disclose procurement costs

• “The financial strain of cancer treatment often pushes families into debt, making it inevitable for them to exhaust their savings and sell assets to meet medical expenses,” — Mr. Khader, health minister

The Hindu

• Implementation of the advisory disclosure requirement from November 1, 2026.

Karnataka becomes first state to expose medicine mark-ups, orders hospitals to disclose procurement costs

• Expert committee to submit its recommendations on anti-cancer drug inclusion by October 14.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines

• NPPA to finalize the list of medicines subject to the 30 % trade-margin cap after the committee’s report.

Karnataka welcomes cancer drug price cap, seeks extension to other life-saving medicines