Maharashtra to Probe 2,800% Markup on Medical Devices

⚡ Key Financial Takeaways

Maharashtra will conduct a high-level investigation into medical device pricing, with the issue to be raised at the state Cabinet and with the central government.

A state survey found a 2,841% markup on a specific IV set (procured at Rs 11.05, MRP Rs 325) and a 2,091% markup on another product.

The Maharashtra FDA Commissioner has written to the National Pharmaceutical Pricing Authority (NPPA) seeking a review of pricing for common hospital consumables.

Current regulations limit annual MRP increases for non-scheduled devices to 10% but do not set a uniform ceiling on the initial gap between procurement and MRP.

💡 Why It Matters

This issue directly impacts patient costs in hospitals, where essential consumables are often billed at MRPs that are disproportionately higher than procurement costs. The regulatory gap identified—where annual price hikes are capped but initial markups are not—highlights a potential vulnerability in the current medical device pricing framework in India.

State Launches High-Level Probe

Maharashtra has initiated a high-level investigation into significant price markups on commonly used medical devices, according to Revenue Minister Chandrashekhar Bawankule. Speaking on September 17, Bawankule stated that the matter would be placed before the state Cabinet and escalated to the central government.

Bawankule characterized the pricing discrepancies as a "massive betrayal" and a "blunder," rather than mere negligence. The investigation follows a survey by the state’s price-monitoring unit, which examined the pricing of essential hospital consumables such as intravenous (IV) sets, syringes, and nebuliser mask kits.

Survey Reveals Extreme Price Gaps

The survey highlighted wide disparities between the prices at which hospitals or traders procure these items and the Maximum Retail Price (MRP) printed on the packaging.

Key findings from the report include: * **Medifusion IV Set:** Manufactured by Haryana-based Mediplus, this item was procured for Rs 11.05 but carried an MRP of Rs 325, resulting in a markup of 2,841 percent. * **Lyvofusion Product:** Another item sold under this name showed a reported markup of 2,091 percent. * **Lifelong Meditech Syringe:** A 10 ml syringe was procured for Rs 6.75 with an MRP of Rs 57.20. * **Vinjoh Healthcare Nebuliser Kit:** An adult nebuliser mask kit was procured for Rs 45 but sold to patients for Rs 652.

It is important to note that these figures represent the percentage difference between procurement and MRP, not the manufacturer’s audited net profit margin. The manufacturers named in the findings did not provide responses to the published report.

Regulatory Intervention Sought

Maharashtra FDA Commissioner Tukaram Mundhe has written to the National Pharmaceutical Pricing Authority (NPPA) seeking a review of the pricing structure for these hospital consumables. Mundhe described the price differences as "irrational and unjustified," while acknowledging that businesses must recover their costs. He emphasized the need for greater transparency in the pricing chain, stating that a trade markup of approximately 2,800% is unacceptable.

The NPPA, operating under the Department of Pharmaceuticals, regulates prices through the Drugs (Prices Control) Order, 2013. While it fixes ceiling prices for specific scheduled devices like coronary stents and orthopaedic knee implants, non-scheduled devices are subject to different rules. Currently, manufacturers of non-scheduled devices cannot raise the MRP by more than 10% over a 12-month period. However, this restriction controls annual inflation but does not prescribe a uniform ceiling on the initial gap between a product’s procurement cost and its MRP.

In March 2026, the Department of Pharmaceuticals informed Parliament that the NPPA monitors both scheduled and non-scheduled medical devices and can act on overcharging complaints or referrals from state price-monitoring units.

🏛️ Background & Context

The National Pharmaceutical Pricing Authority (NPPA) currently applies specific price ceilings to certain high-value medical devices listed in Schedule I of the Drugs (Prices Control) Order, 2013. However, many common consumables like IV sets and syringes fall under the non-scheduled category, where the primary regulatory constraint is the 10% annual MRP increase limit, rather than a fixed relationship between cost and price.

👁️ What To Watch Next

Readers should watch for the outcome of the Maharashtra Cabinet meeting where this issue is expected to be discussed. Additionally, the response from the central government and the NPPA to the Maharashtra FDA’s request for a pricing review will be critical in determining if new regulatory guidelines for non-scheduled medical devices will be introduced.