Why Rs 150 for you, Rs 300-400 for states?: Supreme Court asks Centre on vaccine pricing

A bench comprising Justice DY Chandrachud, LN Rao and SR Bhat asked the Centre to not let the private manufacturers to dictate the pricing and distribution of vaccines and take the responsibility to do so itself.

Representational Image (Credit: Pixabay)

New Delhi: The Supreme Court on Friday (April 30) posed a string of questions in front of the central government regarding vaccine pricing and distribution.

A bench comprising Justice DY Chandrachud, LN Rao and SR Bhat asked the Centre to not let the private manufacturers dictate the pricing and distribution of vaccines and take the responsibility to do so itself.

“Do not leave the vaccine pricing and distribution to the manufactures, This is equity over public goods. You need to pick up the responsibility for this,” the court was quoted as saying by Live Law.

Justice Chandrachud asked why should the vaccine manufacturers get to decide which states get how many vaccine doses.

“Can this question of equity be left to the private sector?” he asked.

Justice Bhat said that since the government has spent on the development of vaccines it should have a say in the matter.

“Rs 4500 crores were funded to the organisation for the development of the vaccine. Then we also own the product!” said Bhat.

Calling the pricing issue is extraordinarily serious, the judge went on to ask why there is a difference in price of vaccines for the states and the central government.

“The same manufacturer is saying Rs 150 to you and 300-400 to the states! At a bulk level, the price difference will be of Rs 30,000 to 40,000 crores. Why must the nation pay this?” he said.

“Why can’t the central government get it in bulk and then have the states it picked up?" continued the judge.

Justice Bhat further cited the prices of vaccines in the United States and the European Union that are much lower compared to that in India.

"It is $2.15 in the US and it is low even in the EU. Why must it be Rs 600 to the states and Rs 1200 to the private hospitals in India? Our drug consumption parallels no one! We are the largest consumer," said Justice Bhat.