For smooth medicine supply, CGHS centres to now have 3-month buffer

The government has mandated a three-month buffer stock of medicines under the Central Government Health Scheme (CGHS), which covers 4.2 million beneficiaries across 81 cities, in a move aimed at tackling recurring shortages and potentially boosting medicine sales while also keeping an eye on quality, according to two government officials and documents reviewed by Mint.The policy was approved for adoption 15 January 2026. The CGHS Directorate is currently rolling out operational guidelines and updating its digital systems to facilitate real-time tracking and buffer stock management.The health and family welfare ministry's move comes in the backdrop of a growing number of complaints regarding medicine shortages and delayed service; with the Centre framing a comprehensive Drug Procurement Policy for the marquee health scheme.

The policy seeks to replace ad hoc provisioning with a demand-driven forecasting model to ensure the uninterrupted availability of high-quality medicines; with the procurement to now take place through the Medical Stores Organisation (MSO) and the Pharmaceuticals & Medical Devices Bureau of India (PMBI).The development assumes significance given that the government procures medicines worth ₹20,000-25,000 crore annually for CGHS, according to the demand for grants for the health ministry. People in the know said that the new norms are unlikely to lead to any significant spike in fund requirements—while building initial buffer stocks will require upfront purchases, the policy aims to eventually reduce the overall cost by replacing expensive local chemist indents with cheaper bulk procurements.According to the document, the rate contracts for all such drugs, which are required for CGHS beneficiaries but