The trade margin on oxygen concentrators has been capping until May 31, 2022, according to the government. In an earlier order dated June 3, the government had stated that the trade margin of oxygen concentrators would be capped at 70 per cent until November 30th in order to keep in check the price of the critical life-saving component amid the second wave.
The Chemicals and Fertilisers Ministry stated in June that the decision was taken in view of the extraordinary circumstances arising due to the Pandemic, which has resulted in volatility in the Maximum Retail Prices MRP of oxygen concentrators. The ministry capped the trade margin at 70 per cent on price to distributor level.
The cap has been put in place to ensure the availability of oxygen concentrators at an affordable price, according to the Union Minister of Chemicals and Fertilisers Sadananda Gowda.
The order, although applicable until November 30, is subject to review, according to the June order.
The ministry asked every retailer, dealer, hospital, and institution to display a price list as furnished by the manufacturer, at a visible part of the business premises so that it is easily accessible.
The manufacturers of MRPs that are not complying with the revised MRP after trade margin capping are liable to deposit the overcharged amount along with interest at the rate of 15 per cent and a penalty up to 100 per cent under the provisions of the Drugs Prices Control Order, 2013 read with Essential Commodities Act, 1955, the provisions of the Drugs Prices Control Order.
State Drug Controllers SDCs were asked to monitor the compliance of the order.
The order was passed after the country saw a spike in cases during the second wave of the pandemic, leading to an increase in demand for medical oxygen.