The government’s trade margin cap on oxygen concentrators helped secure savings for consumers as the price of the critical device fell, the Chemicals and Fertilizers Ministry said on Friday.
On June 3, the National Pharmaceutical Pricing Authority (NPPA) capped the profit margin on oxygen concentrators at 70% of distributor price (PTD).
In accordance with this, “a total of 104 oxygen concentrator manufacturers / importers have submitted revised MRP for 252 products / brands,” he said.
A downward price revision of up to 54% has been reported in 70 brands, showing a reduction in the maximum retail price of up to Rs 54,337 per unit. In addition, 58 brands reported a price reduction of up to 25 percent and 11 brands reported a price reduction of 26 to 50 percent, according to the release.
“Out of 252 products / brands reported, 18 products / brands reported by domestic manufacturers showed no price drop,” he added.
Streamlining the oxygen concentrators’ markup has helped secure savings for consumers by eliminating unreasonable profit margins on imported products, the ministry said.
The revised MRP in effect from June 9, 2021 on all brands and specifications has been shared with national drug controllers for strict monitoring and enforcement, he added.
“In order to monitor availability, manufacturers / importers of oxygen concentrators have been asked to submit monthly stock details,” the statement said.
Oxygen Concentrator is an unlisted drug and currently under voluntary license from the Central Drugs Standard Control Organization (CDSCO).
In February 2019, the NPPA had succeeded in capping the trade margin on anticancer drugs.