Centre asks NPPA to review steep markups on hospital consumables

The Centre has sought an NPPA assessment after Maharashtra FDA flagged large gaps between procurement prices and MRPs for consumables. The review could revive trade-margin caps and extend price scrutiny to currently uncontrolled medical devices.

— Source publishedThu, 17 Sept, 2026, 01:19 IST·First seen Thu, 17 Sept, 2026, 01:28 IST·Source ET Small Business

What happened

National Pharmaceutical Pricing Authority (NPPA) · The Centre has asked NPPA to assess steep markups on hospital consumables after Maharashtra’s FDA flagged

Key facts

  • ₹11.05 trade price versus ₹325 MRP for an IV infusion set
  • 2,841% markup on IV infusion set
  • ₹6.75 trade price versus ₹57.20 MRP for a syringe
  • ₹29.41 trade price versus ₹310 MRP for a catheter
  • Drugs (Prices Control) Order, 2013

What changed

The Centre has asked NPPA to assess steep markups on hospital consumables after Maharashtra’s FDA flagged gaps between procurement prices and MRPs. The review could revive trade-margin caps and bring pricing rules for currently uncontrolled medical devices and consumables.

Why this matters

Hospital operators should prepare for tighter scrutiny of consumable pricing, with potential trade-margin caps pressuring procurement-to-patient billing spreads.

What to watch

  • NPPA terms of reference, category list and timeline for the requested assessment.
  • Maharashtra FDA publication of procurement-price versus MRP findings and expansion of inspections to other states.
  • Any NPPA consultation paper on trade-margin rationalization, compulsory disclosures or ceiling-price methodology.
  • Inclusion of hospital consumables or additional devices in National List of Essential Medicines or price-monitoring lists.
  • Hospital-chain announcements on consumable billing transparency, bundled procedure pricing or centralized purchasing.