A quick thread on today's announcement of the Government of India (GoI) to open up Covid vaccination to those above 18 years of age from May 1st. The fine print is dangerous. The decision comes with a considerable liberalisation of the pricing of vaccines. 1/n ...
The GoI has essentially given freedom to the vaccine makers to sell 50% of their vaccines to the States "in the open market". At what price? This press note says: "private vaccination providers shall transparently declare their self-set vaccination price." 2/n ...
This manufacturer-determined price will most probably be the base price from which States will have to bid to procure vaccines. This is just what the private vaccine firms were asking the GoI to do. It allows them to make super profits in the midst of the pandemic. 3/n ...
Basically, the GoI has withdrawn itself from any commitment to ensure vaccines to the States. It created a vaccine shortage over the last 4 months, but is now passing the buck to the States by asking them to purchase the vaccines directly from the manufacturers. 4/n ...
So, if there is a shortage of vaccines after May 1st, as everyone will flock the vaccination centres, the GoI will simply say that the States are responsible and that they failed to procure enough vaccines from the vaccine companies. 5/n ...
The role of GoI will now be limited to the vaccination of the first 30 crore vulnerable sections, who will get the vaccine free. Rest will have to pay a substantially higher price than at present. There is no ceiling set on the price for vaccines. 6/n ...
This is a highly regressive policy, which needs to be opposed by the States. It will inflict a serious cash burden on the State finances. It will lead to a rise in vaccine prices. This will exclude millions from voluntarily coming forward to vaccinate themselves. 7/n ...
It will allow the GoI to use the manufacturer-State government bargaining to hide its failures in planning for vaccines. It is essentially a gift to the private vaccine makers, with the attendant financial burden seamlessly passed on to the citizens. n/n
pib.gov.in/PressReleasePa…
pib.gov.in/PressReleasePa…
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