The government of both India and the US has decided to cap the margins in the trading of medical equipment to 30% amidst the rise of the need for medical equipment in this pandemic.
Both the govt have decided to favor the public as the unforeseen conditions due to COVID19 would have sored the prices of medical supplies otherwise. While the price cap regime is not done yet, we soon can see the rule being implemented.
The govt further added that the MRP or the maximum retail price of medical equipment and supplies will be counted after the addition of the trade margin taxes. T make things more clear, a trade margin tax is a difference in the amount of money between the cost of production to the point at which it is sold to the stockists.
After this, the govt is going to abandon the old method to provide prices for and control over prices hence the whole amount will be wholly controlled with respect to the manufacturing costs and the trade margin. hence making this whole process very volatile. Since the rule came, the US has continuously pressing India for not to extend any other price caps for other medical supplies and equipment.
