Enforcing Trade Margin Capping of Medical Devices: Inputs Sought

Many of you may remember how NPPA, after LocalCircles intervention mandated the publishing of MRP on medical devices (attached order). The same LocalCircles ask was then accepted by the Department of Consumer Affairs and Packaged Commodity Rules were updated so it is mandatory for manufacturers and importers of medical devices to publish MRP.

LocalCircles tracks success of any policy interventions by seeking your feedback and the same has been done in this case. Based on your inputs, this intervention is only seeing limited success as the survey report below indicates:

Full Report
Media Report

The Government is now considering moving from price capping to capping of trade margin. LocalCircles based on the survey report believes that such a move should not be made till a robust enforcement mechanism is put in place by the Government as now the medical devices in scope will go up from 2 to 24 and every company could theoretically have a different cost base for different medical devices thereby leading to a very complicated model.

We seek your inputs on how should this enforcement work. Leaving it in the hands of a state legal metrology inspector may be asking for too much given the complexities. Do share your ideas on how the enforcement should be done, at the state and local levels so the trade margin capping is successful. more  

View all 19 comments Below 19 comments
The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India. Let the organisation take up the work of controlling the price through regular review. more  
While thank you for the success, I also suggest that the NPPA must be forbidden from diverting the consumer personal money recovered as overcharged amount to the Consolidated Fund of India. Diverting such a money to CFI and The Finance Act 2015 and National Anti-profiteering Authority is not less than the cheating of the consumers through abuse of power. more  
It does not look that companies making medical devices will be transparent with the government on pricing. They will try to hoodwink as much as possible.

Unless the government is able to make them obey and verify each case routinely, it may be difficult to give the desired result to the patients and patient parties.

It is very clear that all medical companies including the great names do no service to the humanity but are essentially making huge profits at the cost of patients. And each one requires to be reigned in. more  
Good steps if implemented with true spirit. It is very bed to kill a person with hues medical bills. more  
This is a case study. High time it gets carried to services more  
Correct decision more  
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