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HomeHealthGOI caps Trade Margin up to 70 percent on Oxygen Concentrators

GOI caps Trade Margin up to 70 percent on Oxygen Concentrators

GOI caps Trade Margin up to 70% on Oxygen Concentrators
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In view of the extraordinary circumstances arising due to the COVID pandemic that has resulted in recent volatility in Maximum Retail Prices (MRP) of Oxygen Concentrators, the Government has decided to step in to regulate the price of Oxygen Concentrators. As per information collected by the government, the margin at the level of distributor currently ranges up to 198%.

Releasing a statement the ministry said, by invoking extraordinary powers under Para 19 of the DPCO(Drugs Price Control Order), 2013 in the larger public interest, NPPA has capped the Trade Margin up to 70% on Price to Distributor (PTD) level on Oxygen Concentrators. Earlier, in February 2019 NPPA(National Pharmaceuticals Pricing Authority of India) 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.

Also Read: GOI caps Trade Margin up to 70% on Oxygen Concentrators

Key Benefits:

  1. 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.
  2. The manufacturers/importers not complying with the revised MRP after Trade Margin capping shall be liable to deposit the overcharged amount along with interest @15% and penalty up to 100% under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.
  3. State Drug Controllers (SDCs) shall monitor the compliance of the order to ensure that no manufacturer, distributor, a retailer shall sell Oxygen Concentrators to any consumer at a price exceeding the revised MRP, to prevent instances of black-marketing.
  4. The Order shall be applicable up to 30th November 2021, subject to review.

How is an Oxygen Concentrator helpful?

The normal oxygen levels usually range from 95% to 100%. Blood oxygen levels below 90% are considered low (hypoxemia). When the blood saturation levels fall below 94 per cent, it could be a sign of respiratory distress which demand immediate assistance. But due to an increase in COVID-19 cases and a shortage of oxygen beds, the oxygen concentrator device aid patients whose saturation levels are between 88 and 92 if they can’t get to a hospital.

Oxygen Concentrators

An oxygen concentrator takes in air, separates the oxygen, and provides it through a nebuliser to a person. Air contains 79 per cent nitrogen and 21% oxygen, but a concentrator that plugs into an electrical source can produce air that contains up to 95 per cent oxygen. When respiratory illnesses cause oxygen saturation levels to fall below 90%, an external device that delivers pure oxygen lowers the impact on the lungs. However, in cases of severe respiratory distress, oxygen that is nearly 99 per cent pure may indeed be required, as an oxygen concentrator is not capable of doing so.

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. The oxygen concentrator is a non-scheduled drug that is currently subject to the Central Drugs Standard Control Organization’s voluntary licencing regime (CDSCO).

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