Q6 · UPSC current affairs · 9 October 2026 · News · Trade Margin Capping on Anti-Cancer Drugs

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What is the primary objective of 'Trade Margin Rationalisation' (TMR) in the pharmaceutical sector?

A To completely abolish the manufacturing of non-scheduled drugs in the private sector.
B To standardise import tariffs on active pharmaceutical ingredients coming from developing nations.
C To cap the difference between the price at which a manufacturer sells to a trade channel and the MRP.
D To subsidise freight charges for transporting essential medicines to remote rural dispensaries.

Correct answer: (c) To cap the difference between the price at which a manufacturer sells to a trade channel and the MRP.

Explanation

Option C is correct because trade margin rationalisation specifically targets capping the price gap between what manufacturers charge trade channels and the final Maximum Retail Price. Options A, C, and D misrepresent the concept of trade margins.

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