Capping trade margin on O2 concentrators resulted in consumer savings: Govt

Capping the trade margin on oxygen concentrators by the government has resulted in ensuring consumer savings as the price of the critical device has come down, the Ministry of Chemicals and Fertilizers said on Friday.

On June 3, the National Pharmaceutical Pricing Authority (NPPA) capped the trade margin on oxygen concentrators at 70 per cent on the price to distributor (PTD) level.

In accordance with it, "a total of 104 manufacturers / importers of oxygen concentrators have submitted revised MRP for 252 products/brands," it said.

Downward revision in price by up to 54 per cent has been reported in 70 brands, showing reduction in maximum retail price by up to Rs 54,337 per unit. Further, 58 brands have reported price reduction of up to 25 per cent and 11 brands reported price reduction of 26-50 per cent, the statement said.

"Out of 252 products/brands reported, 18 products/brands reported by the domestic manufacturers did not show any decline in prices," it added.

The trade margin rationalisation for oxygen concentrators has resulted in ensuring consumer savings by eliminating unreasonable profit margins in imported products, the Ministry said.

The revised MRP effective from June 9, 2021 on all the brands and specifications has been shared with the State Drug Controllers for strict monitoring and enforcement, it added.

"In order to monitor availability, the manufacturers / importers of oxygen concentrators have been directed to submit monthly stock details," the statement said.

Oxygen concentrator is a non-scheduled drug and presently under the voluntary licensing framework of Central Drugs Standard Control Organisation (CDSCO).

In February 2019, NPPA had successfully capped the trade margin on anti-cancer drugs.