The Supreme Court has taken a strong view of the large gap between the Price to Retailer (PTR) and the Maximum Retail Price (MRP) of certain cancer medicines. During a hearing on a petition concerning drug prices, the court noted that some essential cancer drugs had an MRP of around Rs 27,000, while the same medicines were reportedly being sold to retailers for about Rs 2,700. The Court questioned how such a wide difference could exist between the price at which a medicine reaches a retailer and the price printed on its pack.

The Court expressed displeasure over the disparity and described it as a serious issue affecting patients. It also observed that when medicines are provided through government health schemes such as Ayushman Bharat, the cost may ultimately be borne through public funds. Hospitals purchase medicines and subsequently claim reimbursement from the government in eligible cases. The Court observed that this means that it is the taxpayers' money that is used in such cases. The matter came to light after a petition was filed by Dr Sanjay Kulshreshtha, who alleged that pharmaceutical companies deliberately inflate drug prices.

What Is PTR?

Price to Retailer (PTR) is the price at which a manufacturer or marketer sells a medicine to a retailer or pharmacy. It is therefore different from the price that a patient pays. PTR forms an important part of the medicine supply chain. A drug can move from the manufacturer to a distributor or stockist and then to a retailer before reaching the patient. Different costs and margins can be involved at different stages. The National Pharmaceutical Pricing Authority (NPPA) also uses PTR as an important reference in its pricing framework.

What Is MRP?

Maximum Retail Price (MRP) is the maximum price at which a packaged medicine can be sold to the consumer, subject to applicable regulations. It is generally printed on the medicine package. MRP should not be confused with the price paid by the retailer to obtain the medicine. The difference between the two can include trade margins, taxes and other components.

For medicines covered under price control, however, manufacturers must follow the ceiling or retail prices fixed by the NPPA. The government said in March 2026 that 131 anti-cancer drugs had effective ceiling prices, while NPPA also fixes retail prices for certain new drugs.

Why Did The Supreme Court Question The Gap?

The Court's concern centred on the difference between the PTR and MRP. In the example discussed, a medicine available to a retailer for Rs 2,700 reportedly carried an MRP of Rs 27,000, which is a tenfold difference.

The Court questioned the justification for printing such a high MRP when the manufacturer sells the medicine to the retailer at a much lower price. It described the situation, prima facie, as a clear case of fraud and questioned why officials responsible for taking decisions on the issue had remained silent.

The court said, "This is sheer loot and daylight robbery of patients. How can an MRP of Rs 27,000 be printed on the packet of a drug that the manufacturer sells to the retailer for Rs 2,700? It is shocking that the officials who ought to take a decision on this matter remain completely silent. The reasons for this need no explanation."

The Court highlighted the public interest implications because expensive medicines used under government health schemes can ultimately involve tax payer's money.

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