AiMeD Seeks Rational Trade Margins as UP Flags Wide Price Gaps
New Delhi, October 5, 2026: The debate over excessive trade margins in healthcare products has moved to Uttar Pradesh, with an inspection of 214 pharmacies attached to medical colleges and private hospitals reportedly finding price gaps of up to 67 times between purchase price and maximum retail price (MRP).
According to a report in Hindustan Times, the widest gap was found in a Polymyxin-B injection, purchased at ₹74.09 and carrying an MRP of ₹4,980.94.
The Association of Indian Medical Devices Industry (AiMeD) has said the issue should not be confined to pharmaceutical products, pointing out that medical devices can also see significant differences between procurement prices and MRPs.
The UP inspection reportedly found that a three-way stop cock was purchased for ₹6.40 while its MRP was ₹163 – a gap of more than 25 times.
“After Maharashtra and Karnataka, the spotlight is now on UP. But the problem is nationwide,” said Rajiv Nath, Forum Coordinator, AiMeD. “Medical devices must not be overshadowed by pharma in this discussion. Policy action on AiMeD’s recommendations on pilots for trade markup capping is still awaited.”
AiMeD has called for a “rationalised” trade markup, rather than either excessive margins or excessively low caps. The association has proposed a workable markup band of 2 to 6 times, with a maximum trade markup of four times for most consumables leaving the factory at below ₹1,000, based on import landed prices and domestic ex-factory prices.
The association has also cautioned against repeating what it describes as the unintended consequences of COVID-era price controls. During the pandemic, Maharashtra, Kerala and Tamil Nadu introduced trade-margin caps for certain products after concerns over price gouging. AiMeD argues that margins based on public procurement tender prices were set too low, affecting logistics, inventory management and supply-chain access, and contributing to shortages in some markets.
AiMeD is therefore advocating pilot-based implementation of rationalised trade margins before any nationwide policy rollout. It has also called for pilots to follow a uniform national design rather than state-specific caps that could fragment the market.
“We hope this time the policy review and enforcement is pragmatic,” Nath said. “Consumers must be protected from gouging, and manufacturers and distributors must be able to serve every part of the country.”
