The National Pharmaceutical Pricing Authority (NPPA) on July 13 capped trade margins at 70 percent for pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer and glucometer, a move that will bring down prices of these devices widely used in managing COVID.

The revised prices will come into effect from July 20 and remain in force up to January 31, 2022 or until further orders, whichever is earlier, the Indian drug price regulator has said.

There has been a huge demand for pulse oximeter, which is used for measuring oxygen level of the blood, especially during the second COVID wave.

Trade margin is the difference between the price at which manufacturers sell to stockist or distributors and the final price (or maximum retail price) to the buyer.

The government invoked paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, to fix trade margins and directed manufacturers to fix their retail price based on the price at the first point of sale of product or the price to the stockist.