Govt explores Trade Margin Rationalisation in Pharma and Medical Devices Industry

It plays a crucial role in determining the profitability and competitiveness of the pharmaceutical industry.

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Govt of India
Govt of India

Last Updated on January 9, 2024 by The Health Master

Department of Pharmaceuticals Presents Trade Margin Rationalisation Proposal to PMO

The Department of Pharmaceuticals (DoP) recently submitted a comprehensive presentation to the Prime Minister’s Office (PMO) regarding the pressing issue of trade margin rationalisation (TMR).

This move was prompted by objections raised by Laghu Udyog Bharati, an affiliate of the Rashtriya Swayamsevak Sangh (RSS), in response to the proposed price control method.

A reliable source familiar with the matter stated, “A presentation was delivered to the PMO, encompassing the concerns raised by Laghu Udyog Bharati. A decision on this matter is expected in the near future.”

Government Engages in Dialogue with Pharma and Medical Device Industries

To address the contentious matter, the government has initiated renewed discussions with key stakeholders in the pharmaceutical and medical devices industries.

On May 16, the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA) convened a meeting, inviting representatives from industry associations, with the aim of gathering their valuable input and suggestions.

Understanding Trade Margin in the Pharmaceutical Sector

Trade margin refers to the disparity between the price at which manufacturers or importers sell their products to stockists and the price subsequently charged to consumers.

It plays a crucial role in determining the profitability and competitiveness of the pharmaceutical industry.

Industry Associations Participate in Meeting

Representatives from prominent pharmaceutical lobby groups actively participated in the aforementioned meeting.

These groups included:

  • The Organisation of Pharmaceutical Producers of India,
  • Indian Pharmaceutical Alliance,
  • Indian Drug Manufacturers’ Association,
  • Association of Indian Medical Device Industry,
  • Medical Technology Association of India,
  • Bulk Drug Manufacturers Association,
  • Advanced Medical Technology Association,
  • Nathealth,
  • CII,
  • FICCI,
  • PhdCCI,
  • Assocham.

Additionally, the meeting saw the presence of Laghu Udhyog Bharati, an organization dedicated to advocating for the interests of micro and small industries.

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