COVID-19: Centre caps trade margins on Oxygen concentrators; hospitals told to display MRP

Given the fluctuating prices of Oxygen Concentrators amid the COVID-19 pandemic, the Centre on Friday announced that it was setting in to regulate the prices and capping the trade margins to 70% to prevent black-marketing. In a press release, the Government stated that there was huge volatility in the MRPs of Oxygen Concentrators, and the margin at the level of distributor currently ranged up to almost 198%.

"By invoking extraordinary powers under Para 19 of the DPCO, 2013 in larger public interest NPPA has capped the Trade Margin up to 70% on Price to Distributor (PTD) level on Oxygen Concentrators," the official release read. 

Hospitals to display Oxygen Concentrators price list at premises

With the new cap in the trade margins, the Government has asked manufacturers/importers to report revised MRP within three days based on the notified Trade Margin. The revised MRPs will be released in the public domain within a week by NPPA so as to prevent patients and those in need from being cheated amid the COVID-19 pandemic. 

"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. 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," the Centre said.

When it comes to the enforcement of the Trade Margins in the states, State Drug Controllers (SDCs) have been asked to monitor the compliance of the order to ensure that no manufacturer, distributor, the retailer is selling the Oxygen Concentrators to any consumer at a price exceeding the revised MRP. The Order will be applicable till November 30, 2021.