Manufacturers caution supply constraints as states cap prices of COVID essentials

The Tamil Nadu Government on June 04, 2021, announced the fixing of MRP of 15 COVID essential medical products including hand sanitizers, PPE kits, N95 masks and surgical gowns.

This is similar to the orders released by the Kerala government in May and by Maharashtra government. Pavan Choudary, Chairman&

Director General, MTaI, said “We are at a critical juncture in the fight against COVID and the government and industry are trying to rally together to overcome this situation.

At such a time, decisions taken without consulting with the industry will lead to confusion.
Kerala, Tamil Nadu and Maharashtra have fixed prices at different points which may create risk of products being sold at multiple price points across the country.”

“The points at which the prices have been capped seem irrationally low, which may make this market unviable for the industry.

Another concern is that this may deprive the frontline Healthcare workers of access to good quality protection compromising their safety”, said Mr Choudary.

Price Control decisions, when unavoidable, should be taken by a single body for which India already has the NPPA, which has the research and implementation ability to do this job thoroughly.

We look forward to a timely intervention by the concerned authorities to restrain States’ intervention in price control” added Mr Choudary.

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