Capping of trade margins on medical devices
Mr. Mohan, just read the news article about medical devices. I am in the Middle East. this is very concerning that the lobbies of medical companies are getting Govt to consider trade margins instead of price caps, that too 65% margins.
I dont think stents will be available for 30000 any more. And what if the medical device manufacturers load R&D cost, marketing and training cost in the product price or add a lot of mark up on cost as their profit. Then on top of that distributors and retailers will have 65% which means MRP will be fictitious like we have discussed in this circle.
Request this be escalated to relevant authorities for urgent consideration. more
I dont think stents will be available for 30000 any more. And what if the medical device manufacturers load R&D cost, marketing and training cost in the product price or add a lot of mark up on cost as their profit. Then on top of that distributors and retailers will have 65% which means MRP will be fictitious like we have discussed in this circle.
Request this be escalated to relevant authorities for urgent consideration. more
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In case of a competitor, then it will be "survival of the fittest". But till that moment, there will be monopoly and government directives will be useful. more
Sep 01
With due respect to the post as well as comments, it is good that we all are attached emotionally to the problems and hence our comments accordingly. Logically my question is how can we look at the profit margins or think of capping the profit one should make it and then what is the system in ensuring the implementation and then after all why only with the few and select industries. The Govt can only ensure to provide the system and environment wherein the industry iteslf is compelled to compromise on the profit margins voluntarily based on the market affordability. The Govt only can provide atmosphere for such situations. Else if I am a retailer or a businessman under what circumstances Govt can peep into my business accounting unless I am avoiding any of tax or revenue based on wrong declarations. If Govt can take 28% margin in the form of GST, how can it ask me to keep profit of 10-15% who has to take all kind of risks, uphill tasks. You will be surprised if I request you to just imagine that ready made garments are priced almost 300 to 400% of the manufacturing cost. An advocate is even charging as high as lakhs of rupees per hearing basis. more
Aug 26
In the case of medicines and allied items, MRP must be capped with trade margins of not more than 25%-30% of the of purchase price of each of the distributor in the line, If a retailer receives any such product direct from the manufacturer, his margin must also be restrict to 25%-30% with a view to keeping the cost of healthcare to the minimum possible. I agree with Shri S. K.Virmani, that the fees of the professionals like doctors, chartered accountants, advocates, et al must also be capped. more
Aug 25
As long as our rulers are not totally insulated and delinked from the business lobbiests, customers will be victims! As a first step towards this, donations by companies to political parties must be made illegal. more
Aug 24
simple generic tablets cost huge and capping is def required and one of member put it across capping on Lawyers & CA's also must as these fellows are also charging exorhibitent fees and earning crores of rupees glove in hand with IT dept.,!! more
Aug 24
