Medtech firms flag inflated MRPs on imported devices
The matter was discussed at a recent meeting with commerce and industry minister Piyush Goyal, industry executives told ET.
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"It has been seen that the private hospitals and retailers preferentially push imported medical devices, often labelled with inflated or absent MRPs," a senior industry executive who attended the meeting told ET. "The hospitals are doing this to earn higher trade margins compared to affordable Indian made devices." The executive did not wish to be named.
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At the meeting, representatives of domestic manufacturers discussed the procurement challenges the industry is facing in this regard.
"They are making higher margins and more money. The consumer would bear the brunt and, hence, this issue was discussed during the meeting. The ministry has asked the NPPA (
National Pharmaceutical Pricing Authority
) to look into the matter," said another executive, requesting not to be named.
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Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said domestic manufacturers face a stiff challenge in the market from imported devices despite offering the same product at rates that are 20-40% less, "as private hospitals and retailers are preferentially pushing imported established brands of medical devices, often carrying inflated prices or at times labels even without MRPs".
"Indian manufacturers are forced to hike their labelled MRP to satisfy these buyers," he said.
Nath said domestic manufacturers have demanded that all import e-bills of lading should capture the import landed price as well as the MRP on the medical device, and any irrationally excessive MRP of 20 to 30 times of landed cost should be flagged for investigation for duty evasion and unfair trade practices.
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