Last Updated on October 11, 2024 by The Health Master
Download notification dated 30-06-2022, links are given below: The National Pharmaceutical Pricing Authority (NPPA) has notified extending the cap on the trade margin of oxygen concentrators for six more months, till the end of December 2022.
The price of liquid medical oxygen (LMO) and oxygen inhalation (Medicinal gas) in cylinders, which were valid till the end of June 2022, has also been extended to three more months, till the end of September 2022.
The trade margin rationalization (TMR) for oxygen concentrators was announced in June 2021, in the backdrop of increased use of oxygen concentrators during the C-19 pandemic, since the virus mainly affects the respiratory system of a patient, especially those with co-morbidity such as diabetes, cardiac problems, among others.
The Authority in June 2021, notified that the government has put a cap on the trade margin of oxygen concentrators at the first point of sale of the product, at 70 percent.
It was later extended in November, for six more months, till May 30, 2022, as the order in June was valid only till November 30, 2021.
The period to report stock details of four medical devices – Bare metal stents, drug-eluting stents, orthopedic knee implants, and oxygen concentrators was also relaxed from a monthly to quarterly basis during the same period.
The move resulted in a price reduction of 70 out of 252 products and the MRP was reduced up to 54% (up to Rs 54,337).
The pricing of oxygen concentrators did not adversely impact domestic production and no disruption in supplies was observed, said NPPA officials.
Similarly, the NPPA, in its order on September 2020, observed that the demand for medical oxygen has gone up almost four times, from 750 MT per day to around 2,800 MT per day, due to C-19 pandemic.
During the pandemic, around 50 percent of the total liquid oxygen production is being used for medical purposes in comparison to around 15 percent usage during the pre-C-19 period.
“It is therefore imperative to cap the price of LMO to ensure uninterrupted availability of medical oxygen through cylinders to hospitals and consumers,” it said.
Medicinal gas is a scheduled formulation under the amended Schedule I of Drugs (Prices Control) Order [DPCO], 2013, and NPPA notified its ceiling price as Rs 17.49 per cubic meter, excluding Goods and Service Tax (GST) from March 25, 2020.
Looking at the C-19 situation and the consumption trends of medical oxygen in the country, the Union ministry of health and family welfare has delegated powers to NPPA to take steps to immediately regulate the availability and pricing of LMO and medical oxygen cylinders.
An inter-ministerial committee constituted by the NPPA to monitor the prices of APIs and formulations needed for C-19 also recommended capping the prices of these products.
The Authority, through the order, during the time, fixed the ex-factory maximum price of LMO at Rs. 15.22 per cubic meter, excluding GST and Rs. 25.71 for medicinal gas per cubic meter in the cylinder, inclusive of inward transportation cost incurred for LMO up to filler.
The manufacturers not complying with the price cap shall be liable to deposit the overcharged amount along with interest thereon under the provisions of the DPCO, 2013 read with the Essential Commodities Act, 1955, said the order.
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