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The National Pharmaceutical Pricing Authority (NPPA) has further extended the timeframe for the capping of the trade margin of oxygen concentrators and five medical devices imposed in 2021 for three more months.
The price regulations were introduced during Covid-19 pandemic in order to ensure continuous availability of these products and have been extended further considering that the virus continues to be a threat for the public health in the country. The price regulations imposed on these products were expiring at the end of March, 2023 according to an order issued by the end of December, 2022.
With the new decision of the Authority, the price regulations have been extended till June 30, 2023 or till further order, whichever is earlier.
The trade margin rationalisation (TMR) for oxygen concentrators was announced in June, 2021, in the backdrop of increased use of oxygen concentrators during the Covid-19 pandemic, since the virus mainly affects the respiratory system of a patient, especially those with co-morbidity such as diabetes, cardiac problems, among others. The Authority in June, 2021, notified that the Government has put a cap on the trade margin of oxygen concentrators at the first point of sale of the product, at 70 per cent.
The move resulted in price reduction of 70 out of 252 products and the MRP was reduced up to 54% (up to Rs 54,337). The pricing of oxygen concentrators did not adversely impact domestic production and no disruption in supplies was observed, said NPPA officials earlier.
The NPPA first imposed capping the trade margin of five medical devices - pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer, and glucometer - at 70 per cent at the first point of sale of the product (price to distribution) for fixation of maximum retail price of these products, on July 13, 2021 in the wake of increased usage of these devices owing to Covid-19 pandemic. The notification mandated to fix the maximum retail price (MRP) as per the specified formula: "Maximum Retail Price = Price to Distributor (PTD) + (PTD x TM) + Applicable GST, Where TM = Trade Margin not exceeding 70%."
NPPA, through an office memorandum on July 14, also directed manufacturers and importers of these medical devices to submit revised MRPs of their products, in pursuance to the price capping. Based on the data provided, the downward revision of MRP was reported by imported and domestic brands across all the categories. Following this, a total of 1,132 products, including 277 pulse oximeters, 329 blood pressure monitoring machines, 105 glucometers, 164 digital thermometers and 257 nebulisers have reported prices of which 1,033 (91%) reported downward revision of MRP, said the Authority earlier.
The decrease in MRP was between Rs.12 to Rs. 2,95,375 (1%-89%) for pulse oximeters, Rs. 20 to Rs. 38,776 (1%-83%) for blood pressure monitoring machine, Rs. 30 to Rs. 2,250 (1%-98%) for glucometer, Rs. 8 to Rs. 44,775 (1%-89%) for digital thermometer and Rs. 56 to Rs. 6,165 (1%-83%) for nebuliser, according to an earlier document with NPPA.
The price regulator, through a notification on March 31, 2020 has brought that all medical devices including pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer, and glucometer, to be governed under the provisions of DPCO, 2013 with effect from April 1, 2020.
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