Pertaining to volatility in Maximum Retail Prices (MRP) of Oxygen Concentrators, the Government of India has decided to regulate the price of the same.
The National Drug Pricing Authority (NPPA) as per a notification dated June 3, 2021, has capped Trade Margin up to 70% on Price to Distributor (PTD) level on Oxygen Concentrators.
The order has come into effect on 9 June and will be applicable up to 30th November 2021, with subject to review.
Further NPPA vide OM dated 4th June has directed every retailer, dealer, hospital and institution to display a price list as furnished by the manufacturer. In this sequence, a total of 104 manufacturers/importers of Oxygen Concentrators have submitted revised MRP for 252 products/brands.
With a reduction of up to 54 per cent in the prices of the respective 70 products/brands, the MRP has come down by Rs 54,337 per unit.
Apart from this, there has been a reduction of up to 25 per cent in the prices of 58 brands and up to 26-50 per cent in the prices of 11other brands. There is no decline in the prices of 18 products/brands out of 252 products/brands.
The notification also announced that manufacturers or importers not complying with the revised MRP after Trade Margin capping, will be liable to deposit the overcharged amount along with interest at the rate of 15% and penalty up to 100% under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.
The monitoring of the process will be undertaken by State Drug Controllers (SDCs) who will ensure that no manufacturer, distributor, the retailer shall sell Oxygen Concentrators to any consumer at a price exceeding the revised MRP, to prevent instances of black-marketing.
Thus, as a result of Trade Margin Rationalization (TMR) of Oxygen Concentrators, savings have been ensured for the consumers by eliminating the unreasonable profit margins of imported products.
Not only this, the move assures an uninterrupted supply of Oxygen and Oxygen Concentrators in sufficient quantity across the country during the surging waves of the COVID-19 pandemic.