NEW DELHI: The National Pharmaceutical Pricing Authority (NPPA) has capped the trade margin for oxygen concentrators at 70 per cent, the Ministry of Chemicals and Fertilizers said on Friday. “NPPA has capped the trade Margin up to 70 per cent on price to distributor (PTD) level on oxygen concentrators,” the ministry said.
The order will be applicable up to November 30 this year, subject to review. The ministry said that the trade margin rationalisation approach has been taken keeping in mind the need for oxygen due to the pandemic, invoking extraordinary powers under Para 19 of the DPCO, 2013. As per information collected by the government, the margin at the level of distributor currently ranges up to 198 per cent. “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,” it said. The ministry further said that the manufacturers/importers not complying with the revised MRP after trade margin capping, will be liable to deposit the overcharged amount along with 15 per cent interest and penalty up to 100 per cent under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.
It also directed the State Drug Controllers (SDCs) to monitor the compliance of the order to ensure that no manufacturer, distributor, retailer will sell Oxygen Concentrators to any consumer at a price exceeding the revised MRP, to prevent instances of black-marketing. Earlier, in February 2019 NPPA had successfully capped the trade margin on anti-cancer Drugs. Based on the notified trade margin, NPPA has instructed the manufacturers/importers to report revised MRP within three days. Revised MRPs will be informed in the public domain within a week by NPPA. With the spurt in cases under COVID 2.0 pandemic in the country, demand for medical oxygen has gone considerably. The government is striving to ensure an uninterrupted supply of oxygen and oxygen concentrators in adequate quantity in the country during the pandemic.
Oxygen Concentrator is a Non-Scheduled Drug and presently under the voluntary licensing framework of Central Drugs Standard Control Organization (CDSCO). Its price is being monitored under the provisions of DPCO 2013.
