Prices of oxygen concentrators down 54% after govt caps trade margin
By TIOL News Service
NEW DELHI, JUN 12, 2021: AFTER the National Pharmaceutical Pricing Authority (NPPA) capped the trade margin on oxygen concentrators on June 3, there has been a downward revision in price up to 54 per cent in 70 products and brands, the Chemicals Ministry said on Friday.
The government had capped the trade margin at 70 per cent on Price to Distributor (PTD) level to control the volatility in the Maximum Retail Prices (MRP) of the oxygen concentrators.
"A total of 104 manufacturers and importers of oxygen concentrators have submitted revised MRP for 252 products and brands," said the ministry.
Prices of 70 brands have dropped by up to 54%, with MRPs on average coming down by up to Rs. 54,337 per unit. Another 58 brands have reported price reduction up to 25 per cent and 11 brands between 26-50 per cent.
"Trade Margin Rationalisation (TMR) for oxygen concentrators has resulted in ensuring consumer savings by eliminating unreasonable profit margins in imported products," noted the ministry.
There were 18 products reported by the domestic manufacturers which did not show any decline in prices.
The revised MRP effective from June 9 on all the brands and specifications have been shared with the State Drug Controllers for strict monitoring and enforcement.