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Prices of oxygen concentrators drop by 54% after Govt caps trade margin of sellers

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Prices of 70 brands of oxygen concentrators has come down by over 50 % after the government imposed a limit on the trade margins of sellers

The prices of 70 brands of oxygen concentrators being sold in the market has come down by over 50 % after the government imposed a limit on the trade margins of sellers.

According to a government statement, a 54% decline in prices has been reported in 70 products/brands of oxygen concentrators, showing a reduction in the minimum retail price (MRP) of up to Rs. 54,337 per unit. Further, 58 brands have reported a price reduction up to 25% and 11 brands between 26-50%.

Out of 252 products/brands reported, only 18 products/brands reported by domestic manufacturers did not show any decline in prices. The trade margin rationalisation for oxygen concentrators has resulted in ensuring consumer savings by eliminating unreasonable profit margins in imported products, the government statesman  said.

National Pharmaceutical Pricing Authority (NPPA) in its notification dated 3rdJune 2021 has capped the trade margin for oxygen concentrators at 70% on price to distributor level. Consequently, a total of 104 manufacturers / importers of oxygen concentrators have submitted revised MRP for 252 products/brands.

 Maximum reduction in MRPs have been observed in the following categories:

  • Portable-5LPM (19 out of 80 products)
  • Portable-10LPM (7 out of 32 products)
  • Stationary-5LPM (19 out of 46 products)
  • Stationary-10LPM (13 out of 27 products)

The revised MRP effective from 9th June 2021 on all the brands and specifications have been shared with the State Drug Controllers for strict monitoring and enforcement. The relevant instructions are available on NPPA’s website (www.nppa.gov.in). In order to monitor availability, the manufacturers / importers of oxygen concentrators have been directed to submit monthly stock details.

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