'Price cap on medical devices favoured'

The  debate over price capping of medical devices versus capping of trade margins is tilted towards the continuation of price caps.

Published: 04th September 2018 05:38 AM  |   Last Updated: 04th September 2018 05:38 AM   |  A+A-

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Express News Service

NEW DELHI: The debate over price capping of medical devices versus capping of trade margins is tilted towards the continuation of price caps.

The finding assumes significance as the government is reportedly evaluating if capping of trade margins, instead of price-capping, makes more sense. Recently, the NITI Aayog recommended capping trade margin at 65% for medical devices to ensure that the government and the device manufacturers could come to a mutually beneficial ground.

LocalCircles conducted a survey regarding the introduction of a new category for premium stents in the country. The survey received more than 25,000 votes.

Citizens were asked how the government could cap the prices so that the medical devices stay affordable. A whopping 54% said the government should continue to cap the final price to end-consumer. While 11% of respondents said the price cap be removed and instead a cap on trade margin of 65% be put, 26% want price cap removed and trade margin capped at 30%.

Nine per cent were unable to decide.The trade margin is the difference between the price at which the manufacturers/importers sell products to stockists and the price charged to consumers.

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