Economy

NPPA caps maximum retail price of five medical devices

Our Bureau New Delhi | Updated on July 13, 2021

Devices include Pulse Oximeter, Blood Pressure Monitoring Machine, Nebuliser, and Digital Thermometer

The Chemicals and Fertilizers Ministry’s National Pharmaceutical Pricing Authority, or NPPA, has capped the Maximum Retail Price (MRP) of five medical devices, including Pulse Oximeter, Blood Pressure Monitoring Machine, Nebuliser, Digital Thermometer and Glucometer, to make these devices more affordable during the pandemic.

Manufacturers have been directed to put a cap on their trade margin at the first point of sale and fix the MRP as per the prescribed formula given in its notification. The revised prices will come into effect from July 20, and remain in force till January 31, 2022, or until further orders, whichever is earlier.

According to the Ministry’s notification, manufacturers of these medical devices need to submit the information containing details of the price to distributors, retail price, existing and revised MRP, by using the prescribed formula involving sales during the year from April 1, 2020, to March 31, 2021, and total quantity sold during the same year and applicable GST.

Manufacturers who do not comply with the MRP so computed as per the formula prescribed will be liable to deposit the overcharged amount, along with 15 per cent interest per annum from the date of increase in price, in addition to a penalty of up to 100 per cent of the overcharged amount under the provisions of the Drugs (Prices Control) Order 2013 read with the Essential Commodities Act, 1955.

Published on July 13, 2021

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