Covid management: India sets trade margin cap on 5 medical devices to reduce prices

India has capped at 70 percent the trade margins of five medical devices commonly used by Covid-19 patients in order to bring down maximum retail prices.

The widely-used devices are pulse oximeters, blood pressure monitoring machines, glucometers, nebulisers and digital thermometers – devices in particularly high demand from Covid-19 patients isolating at home. 

Trade margin is the difference between the price at which a manufacturer sells the device to a distributor or stockist and the price paid by the customer at retail shops.

The data collected by India's National Pharmaceutical Pricing Authority shows the trade margin earlier ranged up to nearly 700 percent from manufacture to distributor to retail level.

The move, announced by the Ministry of Chemicals and Fertilizer, will take effect from July 20 and remain in force till December 31 next year.

"Keeping in view the evolving Covid pandemic and the continuing demand of the medical devices, the government has decided to regulate their prices for affordable healthcare and COVID management."