The NITI Aayog has suggested a 50 per cent cap on the trade margins and is against 30 per cent limit, reported by ThePrint .

New Delhi: The Narendra Modi cabinet is planning to cap trade margins on medical devices to as low as 30 per cent with an objective to make essential instruments such as pacemakers, catheters affordable and accessible to all patients. The draft has already been dispatched to the National Pharmaceutical Pricing Authority (NPPA), the central drug pricing authority for consideration.

On the contrary, NITI Aayog has drafted a proposal for capping trade margins by using various simulations — within a range of 30 per cent to 85 per cent.

The NITI Aayog has suggested a 50 per cent cap on the trade margins and is against 30 per cent limit, reported by a portal.

The trade margin is the difference between the price at which manufacturers sell drugs to stockists (and distributors) and maximum retail price (MRP) to patients.

All the simulations and data sets have been analysed to cap the trade margins on the medical devices with the aim of enhancing the affordability of these medical devices.

The aim of the draft is to reduce the margins given by medical device manufacturing firms to the hospitals who in turn sell these expensive devices to patients.

The proposal has been forwarded to the department of pharmaceuticals (DoP) under the Ministry of Chemicals and Fertilizers. The DoP is the parent department for NPPA.

The DoP is in the final stages of discussion over the proposal and is likely to issue a notification soon.

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