Image Credit : The Financial Express
Prime Minister, Narendra Modi in his latest speech declared about the changed vaccine procurement policy. As per ‘The Indian Express’ reports, the centre is expected to involve in renegotiations on the prices of Bharat Biotech’s Covaxin and Serum Institute of India’s Covishield.
A senior government official informed that the revised procurement price per doses, which is currently Rs 150 for both vaccine is “yet to be decided under the new system”. The official further added that the centre is finalizing the contours of pricing.
Health Secretary Rajesh Bhushan, Finance Ministry, NITI Aayog Member(Health) Dr Vinod K Paul, Bharat Biotech and Serum Institute of India did not utter a word about the issue.
According to Prime Minister Narendra Modi’s announcement in his speech earlier this week, it was stated that the centre would procure 75 per cent vaccine from the vaccine makers, including 25 per cent of the state quota. These procured vaccines by the centre would be distributed to the state for free. This policy is directed to enable free vaccination for individuals above 18 years of age from June 21. This would cost the exchequer Rs 15,000 crore more when compared to the Budget allocation of Rs 35,000 crore.
In January, when the centre commenced its vaccination drive, it procured around 11 million doses of Covishield at Rs 200 each excluding the taxes and 5.5 million doses of Covaxin at Rs 206 each excluding taxes. Later, the prices of the vaccine were negotiated at Rs 150 per doses.
Earlier till the month of April, the private hospitals were required to obtain vaccine through the government. This enabled the centre to cap the prices at Rs 250 per dose for both Covaxin and Covishield. Further, when the vaccination for the 18 – 44 years age group began, the Centre’s procurement price remain constant. On 24th April, the Health Ministry tweeted, ” It is clarified that Govt. of India’s procurement price for both the COVID 19 vaccines remains Rs 150 per dose.”
In April, the vaccine manufacturers were allowed to set their own prices for states and private health care facilities followed by the decision to decentralize vaccine procurement. Initially, SII priced their vaccines at Rs 400 and Bharat Biotech priced their vaccines at Rs 600. After facing repercussions, the prices of the vaccines were brought down to Rs 300 for each dose of Covishield and Rs 400 for each dose of Covaxin.
Earlier, the states had to struggle with private hospitals for vaccine supplies. later, they were allowed to access an exclusive 25 percent of the vaccine produced at the revised rates. The centre had access to 50 percent of the doses and the rest 25 percent were accessed by the private hospitals.
In an affidavit filed in response to a suo moto writ petition in the Supreme court on the distribution of essential supplies and service during the pandemic, the centre claimed, “It is pertinent to note that the central government, by nature of its large vaccination programme, place large purchase orders for vaccines as opposed to the state government and/or private hospitals and therefore this reality has some reflection in the prices negotiated.”
On May 31, the dichotomy in pricing was flagged by the Supreme Court. It stated, ” The Liberalised Vaccination Policy leaves the states/ UT Governments to fend for themselves, rather than central government acting on the behalf of the entire nation.” recognizing concerns during the proceedings.