Government caps trade margin on oxygen concentrators at 70%

Oxygen concentrators are a non-scheduled drug and presently under the voluntary licensing framework CDSCO (HT_PRINT)Premium
Oxygen concentrators are a non-scheduled drug and presently under the voluntary licensing framework CDSCO (HT_PRINT)
2 min read . Updated: 04 Jun 2021, 06:07 PM IST Neetu Chandra Sharma

New Delhi: The Centre on Friday capped trade margin on oxygen concentrators at 70%. As per information collected by the government, margin at the level of distributors currently ranges up to 198%.

The decision to regulate the price of oxygen concentrators comes in the backdrop of the volatility in the maximum retail price (MRP) of life saving medical equipment amid the ravages of covid-19.

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“By invoking extraordinary powers under Para 19 of the DPCO, 2013 in larger public interest National Pharmaceutical Pricing Authority (NPPA) has capped the Trade Margin up to 70% on Price to Distributor (PTD) level on Oxygen Concentrators," a government statement said.

In February 2019, NPPA had capped trade margin on anti-cancer drugs. Based on the notified trade margin, the authority has instructed manufacturers/importers to report revised MRP within three days. Revised MRPs will be informed in public domain within a week.

According to the government, 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.

Manufacturers/importers not complying with the revised MRP shall be liable to deposit the overcharged amount along with interest at 15% and penalty up to 100% under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955. State Drug Controllers (SDCs) shall monitor the compliance of the order to ensure that no manufacturer, distributer, retailer shall sell oxygen concentrators to any consumer at a price exceeding the revised MRP, to prevent instances of black-marketing.

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

With the spurt in covid cases in the country, demand for medical oxygen has gone up considerably.

Oxygen concentrator is a non-scheduled drug and presently under voluntary licensing framework of Central Drugs Standard Control Organization (CDSCO). Its price is being monitored under the provisions of DPCO 2013.


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