New Delhi: The Medical Technology Association of India (MTaI) has stated that there is no need to revisit ex-factory or landed cost-based price capping as it is akin to trying to re-invent the wheel.
The Association’s statement issued to the press on the evening of 22nd December coincided the announcement made by domestic syringe manufacturers on voluntarily reducing trade margins to 75 percent.
Explaining why it felt that there is no need of price capping, MTaI mentioned that it has been a strong supporter and endorses the recommendations made in the Report of the Committee on High Trade Margins in the Sale of Drug, 2016 prepared by Department of Pharmaceuticals (DoP). “The report rightly indicates an escalation of Trade Margin due to competitive reasons and hence leads to an escalated MRP. So instead of capping Maximum Retail Price (MRP), Trade Margins should be capped. Further, as per the report, the definition of Trade Margin is “Trade Margin is the difference between the MRP and Price to Trade (PTT)”. Price to Trade as per the DOP report is defined as the price at which the manufacturer/importer will sell to the first point of distribution/ sale.”
The MTaI’s statement is also in the background of a meeting held on December 18, 2017, between NPPA and some of the member companies of MTaI to discuss various concerns relating to disposable hypodermic syringes and disposable hypodermic needles.