New Delhi: The Association of Indian Medical Devices Industry (AiMeD) has said the focus on excessive trade margins has now shifted to Uttar Pradesh, and has asked that medical devices not be overshadowed by pharmaceuticals in the debate.
An inspection of 214 pharmacies attached to medical colleges and private hospitals in the state found gaps of up to 67 times between purchase price and maximum retail price (MRP), AiMeD said, citing a Hindustan Times report.
The widest gap was on a Polymyxin-B injection, bought at ₹74.09 and carrying an MRP of ₹4,980.94.
Devices showed wide gaps too. A three-way stop cock was purchased for ₹6.40 against an MRP of ₹163, more than 25 times the purchase price, according to AiMeD.
“After Maharashtra and Karnataka, the spotlight is now on UP. But the problem is nationwide. The wound has been festering for a long time and needs surgery. Medical devices must not be overshadowed by pharma in this discussion. Policy action on AiMeD’s recommendations on pilots for trade markup capping are still awaited.”” said Rajiv Nath, Forum Coordinator, AiMeD.
AiMeD recommended a “rationalised” trade markup of 2 to 6 times instead of extremes. For most consumables leaving the factory at under ₹1,000, it suggested a maximum markup of 4 times on landed import prices and domestic ex-factory prices.
The association cautioned against overcorrection, pointing to the COVID-19 period, when Maharashtra, Kerala and Tamil Nadu capped at “unrealistically low levels”, based on public procurement tender prices.
AiMed said, “This was harmful. It caused shortages and cut off supply-chain access for manufacturing units in those states and neighbouring areas. The markups were too low to cover logistics, multiple changes of hands and inventory management at distant supply points.”
It added that rationalised markups should be tested through pilots first which are uniform and national in design, avoiding state-by-state caps that fragment the market.
“We hope this time the policy review and enforcement is pragmatic. Consumers must be protected from gouging, and manufacturers and distributors must be able to serve every part of the country,” Nath added.
