SC asks Centre to explain rationale behind different price slabs of vaccines

“The Union of India shall clarify in its affidavit the basis and rationale adopted in regard to the pricing of vaccines,” said the bench headed by Justice D Y Chandrachud

New Delhi: The Supreme Court Tuesday took note of different prices of COVID-19 vaccines for Centre, states and the private hospitals and asked the central government to explain to it the “rationale and basis” behind such a pricing policy.

The top court, hearing a suo motu case related to ‘distribution of essential supplies and services during pandemic’, also asked the Centre as to how it was going to meet the sudden surge in demand of vaccines from May 1 when vaccination for all above 18 years of age would begin.

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“The Union of India shall clarify in its affidavit the basis and rationale adopted in regard to the pricing of vaccines,” said the bench headed by Justice D Y Chandrachud while fixing the suo motu case for hearing on Friday.

“Different manufacturers are coming out with different prices. What is Centre doing about it,” said the bench, which also comprised justices L Nageswara Rao and S Ravindra Bhat.

In the proceedings conducted through video conferencing, senior advocate and SCBA (Supreme Court Bar Association) President Vikas Singh informed the bench that there has been different price slabs for vaccines to be procured by the Centre, states and the private hospitals.

The bench referred to the powers of the Centre under the Drugs Control law to control the price of medicines and said the pandemic was “perhaps the right time to invoke such powers”.
“This is a pandemic and a national crisis. If this is not the time to issue such powers, what is the time,” it asked.

The pricing policy has allowed vaccine manufacturers to fix the price and under it, Serum Institute of India has announced that it will sell Covishield to states at Rs 400 per dose and to private hospitals at the rate of Rs 600 per dose.

However, it has been selling the vaccine at Rs 150 per dose to the Centre, one of the lawyers said. Referring to expanding the age group of vaccination, the bench said, “if vaccination is open to above 18 we need to know how you are going to meet the increased surge in demand for vaccines.” The bench also asked the Centre to apprise the top court of the modalities on distribution of oxygen as well as the vaccines to states and the monitoring mechanism.

The bench on April 22 took note of the pandemic situation due to sudden surge in COVID-19 cases as also in mortality and said it expected the Centre to come out with a “national plan” to deal with distribution of essential services and supplies, including oxygen and drugs.

Observing that oxygen to patients infected with the virus is said to be an “essential part” of treatment, the top court had said it seemed that a certain amount of “panic” has been generated due to which people have approached several high courts seeking relief.