Govt. caps trade margin for five medical devices

So far around 620 brands have faced price reduction with the government capping trade margins on five more critical medical devices such as digital thermometer and pulse oximeter which are being used extensively in the treatment of COVID-19, at 70% which is effective from 20th July.



  • On July 13th, the National Pharmaceuticals Pricing Authority (NPPA) had invoked the rule to put a cap on trade margin of 5 medical devices. They are glucometer, oximeter, nebuliser, BP monitor and digital thermometer. The margin was capped up to 70%.
  • Showing reduction of Rs 2,95,375 per unit, the maximum downward revision has been reported by an imported pulse oximeter brand.
  • Every domestic import and export brands across all categories has reported about downward revision of MRP.
  • Pulse oximeters, nebulisers and blood pressure monitoring machines have seen the highest rate reduction was said by the importers.
  • This revised MRP rates are effective from 20th July on all the brands available in India and the state drug controllers have received specifications for the strict monitoring and enforcement of this rule.


Why was this decision taken?

This decision was taken with the primary aim of making medical devices affordable during this pandemic situation and hence, trade margin on these medical devices have been regulated by the NPPA. Under extraordinary circumstances in public interest, Paragraph 19 of DPCO, 2013, gives power to the NPPA to control the drug prices which are not under the NLEM (National List of Essential Medicines). Earlier in the month of June, trade margin on oxygen concentrators were capped at 70% by the government.


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