Ravi S Singh

Tribune News Service

New Delhi, June 4

Amidst reports of distributors charging exorbitant rates for Oxygen concentrators to pocket higher trade margins during Covid surge, the Centre on Friday stepped in to regulate its prices.

The Fertilisers and Chemicals Ministry said that the trade margins on Oxygen Concentrators have been capped up to 70 per cent on Price to Distributor (PTD) level under the new regimen. 

As per information collected by the government, margin at the level of distributor currently ranges up to 198 per cent causing problems to common persons.

The government stepped in view of the high volatility on MRP of the Oxygen Concentrators in the midst of Covid's second surge.

The National Pharmaceutical Pricing Authority (NPPA) invoked extraordinary powers under Para 19 of the Drugs Price Control Order (DPCO), 2013 to cap the trade margin.

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

"Based on the notified Trade Margin, NPPA has directed the manufacturers/importers to report revised MRP within three days. Revised MRPs will be informed in public domain within a week by NPPA," the Ministry said.

Every retailer, dealer, hospital and institution shall display a 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.

State Drug Controllers (SDCs) have been directed to monitor the compliance of the order to prevent instances of black-marketing.

With the spurt in cases under Covid 2.0 pandemic 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 Organisation (CDSCO). Its price is being monitored under the provisions of DPCO 2013.