New Delhi: The prices of oxygen concentrators have been cut by more than half as a result of the government's decision to cap the trade margin which has come into effect this week, the Ministry of Chemicals and Fertilisers said on Friday. On June 3, the National Pharmaceutical Pricing Authority (NPPA), a body that regulates the prices of essential drugs and other medical equipment, has capped the trade margin for oxygen concentrators at 70% on the Price to Distributor (PTD) level.
According to the Ministry, as a result of the government notification, 104 manufacturers and importers of oxygen concentrators submitted revised maximum retail prices (MRP) for 252 products and brands. "Downward revision in price up to 54% has been reported in 70 products and brands, showing reduction of up to Rs 54,337 per unit in MRP," the government said.
According to the Ministry, in addition to these 70 products and brands, 58 other brands have reported a price reduction of up to 25% and 11 brands have reported price reduction between 26-50%. The government said 18 out of 252 products and brands reported by the domestic manufacturers did not show any decline in prices. The Ministry said Trade Margin Rationalisation (TMR) for oxygen concentrators resulted in ensuring consumer savings by eliminating unreasonable profit margins in imported products.
Prices shot up during the second wave
The price of life-saving equipment, including oxygen concentrators and oxygen cylinders, hit a record high during the ferocious second Covid wave that raged in the country during April-May this year before ebbing since the start of this month. A five-litre portable oxygen concentrator imported from China which was available for Rs 40,000 to Rs 50,000 on e-commerce platforms last year was selling over Rs 1,00,000 to Rs 1,25,000 in the black market as ensuring a steady oxygen supply for patients became a priority.
A large number of caregivers, who were managing Covid patients in a home setting were desperate to buy oxygen concentrators as ensuring refill of medical oxygen cylinders was a nightmare for tens of thousands of people across several states hit hard by the 'Delta' variant of the virus. Acute shortage of medical oxygen in private and government hospitals compelled the people to arrange oxygen concentrators and cylinders on their own to save the lives of their loved ones.
According to reports, the import price of oxygen concentrators imported from China and other suppliers shot up by several times during the second Covid wave in India as a huge demand-supply mismatch aggravated the problem as foreign suppliers and Indian importers tried to take advantage of the country's difficult battle against the deadly virus.
Air Force, Navy, Railways pressed into action
To tide over the problem, the government pressed Indian Air Force in action to transport oxygen tankers and concentrators within the country and also from outside the country. While Indian Railways ran special Oxygen Express trains to transport Liquid Oxygen Tankers from production centres to affected states across the country, the Indian Navy was also pressed into action to bring liquid oxygen, oxygen tankers, and concentrators from other countries under Operation Samudra Setu.
Maximum MRP cut in more than 30% of products
According to the Ministry, a maximum reduction in the maximum retail prices (MRPs) has been observed in over 30% of brands and products. In the case of portable oxygen concentrators with 5 litres per minute oxygen supply capacity, the maximum reduction was noticed in 19 out of 80 brands and products. Similarly, in the case of portable oxygen concentrators with 10 litres per minute supply capacity, the maximum reduction was noticed in 7 out of 32 products and brands, while in the case of stationary oxygen concentrators with 5 litres per minute capacity, the maximum reduction was noticed in 19 out of 46 brands and products. In the case of stationary oxygen concentrators with 10 litres per minute supply capacity, the maximum reduction was observed in 13 out of 27 products and brands.
The government said it has shared the revised MRP on all brands and specifications that came into effect on Wednesday with the State Drug Controllers for strict monitoring and enforcement. To monitor availability, the manufacturers and importers of oxygen concentrators have been directed to submit monthly stock details, said the government. "The relevant instructions are available on NPPA's website," it added.
