Cancer Chemotherapy Drugs To Cost More As Centre Approves Price Hike Amid Nationwide Shortage

Last Updated:June 10, 2026, 11:43 IST

Government has been considering requests for price revision of 82 formulations that were examined by the inter-ministerial committee. Price revision has been approved for 4 drugs.

The central government has formally green-lit price increases for cisplatin and carboplatin – the two backbone chemotherapy drugs now in short supply across the country. The decision, seen by News18, marks the first official acknowledgment at the highest level that the shortage is real and demands emergency action.

Last week, News18 reported about the shortage of first line cancer chemotherapy drugs across India.

“In principle approval of the Hon’ble Minister (Chemicals & Fertilizers) is granted for utilizing para 19 of DPCO, 2013 in respect of aforesaid formulations," said the letter written by Department of Pharmaceuticals to Member Secretary, National Pharmaceuticals Pricing Authority (NPPA) on June 7, accessed by News18.

In simple terms, Para 19 is an exceptional power that can be invoked when the government believes intervention is necessary to ensure affordability or availability of medicines. It allows action beyond the normal price-control mechanism.

NPPA is the country’s price watchdog which works under the department of pharmaceuticals, Ministry of Chemicals and Fertilizers.

What the government documents actually say

The approval came after a government committee examined 82 formulations seeking higher prices. Only four drugs made the cut as urgent enough. Cisplatin and carboplatin – chemotherapy drugs – were among them.

Another letter written by NPPA to the economic adviser, Department of Pharmaceuticals on 4 June, seen by News18, mentions that the department has received many requests for price upgradation.

“…applications received by NPPA from various pharmaceutical companies secking upward revision of prices… for certain scheduled formulations. The applicants have cited factors such as substantial increase in Active Pharmaceutical Ingredient (API) prices, escalation in production costs, fluctuations in foreign exchange rates, and other related factors adversely affecting the economic viability of manufacturing and marketing of these formulations on a sustainable basis."

It further explains that “applications pertaining to 82 formulations were examined by the Inter-Ministerial Committee IMC)… After detailed examination the IMC recommended consideration of price revision in respect of four formulations, one of carboplatin Injection, one of cisplatin injection, and two of anti-tetanus immunoglobulin injection, in view of the significant increase in API costs and concerns regarding their continued availability."

The committee’s reasoning is striking. It noted: “The Committee also noted the concerns expressed by Tata Memorial Cancer Hospital regarding shortages of Carboplatin and Cisplatin injections, which are widely used as first-line chemotherapy drugs for the treatment of various cancers."

It added, “Ensuring uninterrupted availability of these critical medicines is essential from a public health perspective. In respect of the remaining 78 formulations, the IMC has sought additional information for further examination."

Here, NPPA sought permission from DoP for approving price hikes. The letter said, “In view of the emerging shortages of carboplatin injection and cisplatin injection, and the viability concerns reported for these four formulations, the matter merits consideration by the authority…The issue was discussed during a review meeting by secretary, DoP on pending applications for price increase and NPPA was directed to process the requests in accordance with the frameworks… Further, DoP advised NPPA that any specific circumstances warranting invocation of Para 19 should be flagged to the department."

Hence on June 7, DoP has informed NPPA that “in principle" approval of the minister has been received on using powers under Para 19.

The ministry directed pricing authority to work out how much prices could be raised. The formula suggested: “The Standing Committee recommended 10 per cent increase per year from last fixation with a ceiling of 50 per cent could also be a guide but primary principle should be cost increase."

The Department of Pharmaceuticals has further asked the drug price watchdog, “NPPA is advised to examine increase in raw material costs for these drugs while align price increase and its effect to determine price increase to be allowed. NPPA is also advised to examine in other cases where the industry has requested for price increase due to raw material cost increase on similar lines."

Why does this matter?

This government approval connects directly to the shortage crisis News18 reported last week.

Several top oncologists across India told News18 about the shortage of first line chemotherapy drugs which were causing treatment delays, dose reductions, interrupted chemotherapy schedules, and inventory pressure are becoming routine. Oncologists told News18 that shortages are leading to the use of substitutes of platinum agents with alternative regimens – a compromise that often carries inferior efficacy and substantially higher costs for patients and institutions alike.

However, the shortage was not just a supply problem but it was an economics problem. Companies had made a business decision: stop producing drugs that lose money.

Now, with government approval for higher prices, manufacturers have the financial breathing room to scale production back up.

About the Author

Himani ChandnaSenior Associate Editor

Himani Chandna, Senior Associate Editor at CNN-News18, tracks healthcare, pharma and medical research, bringing clarity to complex science and policy.

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