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Indian government caps trade margin on oxygen concentrators at 70 per cent

Oxygen concentrator. Photo: Pixabay

New Delhi, June 4 (MNN) Amid India’s battle against the second wave of coronavirus pandemic, the government has stepped in to regulate the prices of oxygen concentrators and capped the trade margin at 70 per cent.

As per information collected by the government, the present margin at the level of distributor currently goes up to 198 per cent.

By invoking the extraordinary powers under Para 19 of the Drug Price Control Order, 2013 in the larger public interest, the National Pharmaceutical Pricing Authority (NPPA) has capped the trade margin up to 70 per cent on the Price to Distributor (PTD) level on oxygen concentrators.

Oxygen concentrator is a Non-Scheduled Drug and presently under voluntary licensing framework of the Central Drugs Standard Control Organisation (CDSCO). Its price is being monitored under the provisions of DPCO 2013.

Based on the notified trade margin, the NPPA has now instructed the manufacturers and importers to report the revised MRP of oxygen concentrators within three days.

The revised MRPs will be put up in the public domain within a week by the NPPA.

Every retailer, dealer, hospital and institution shall display price list as furnished by the manufacturer, on a conspicuous part of the business premises in a manner so as to be easily accessible to any person wishing to consult the same.

The manufacturers and importers not complying with the revised MRP after trade margin capping shall be liable to deposit the overcharged amount along with interest at the rate of 15 per cent and penalty up to 100 per cent under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.

State Drug Controllers shall monitor the compliance of the order to ensure that no manufacturer, distributor, retailer shall sell oxygen concentrators to any consumer at a price exceeding the revised Maximum Retail Price, to prevent black marketing.

The order shall be applicable up to November 30, 2021, subject to review.

In February 2019, NPPA had successfully capped the trade margin on anti-cancer drugs.

With a spurt in corona cases in the country, the demand for medical oxygen had gone up considerably.

The Indian government said it is striving to ensure uninterrupted supply of oxygen and oxygen concentrators in adequate quantity in the country during the pandemic.

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