Read The Times Australia

Daily Bulletin

Charging Indians for COVID vaccines is bad, letting vaccine producers charge what they like is unconscionable

  • Written by: R. Ramakumar, Professor of Economics, Tata Institute of Social Sciences

Countries around the world are racing against time to vaccinate their populations against the coronavirus.

But India has thus far been a poor performer, with only 9.6% of its population receiving a vaccine so far (compared to 51.8% in the UK, 45% in the US, 32.1% in Germany and 14.9% in Brazil).

While there are a few issues plaguing the vaccine roll out, the most egregious is the fact most Indians, many of whom live in poverty, are being made to pay for their shots. And the government is allowing vaccine producers to charge whatever they like.

Read more: After early success, India's daily COVID infections have surpassed the US and Brazil. Why?

Not enough jabs

To cover its entire adult (over 18 years) population, India needs 1.9 billion doses of vaccines. If these vaccines were to be administered over the next 12 months, India would need 161 million doses each month, or 5.4 million doses each day.

At present, India produces only about 2.5 million doses per day, which may rise at best to three million doses per day over the next few months. At the present rate, India would be able to cover only 30% of its population by early 2022.

Only by 2023 would it be able to administer the shot to everyone above 18, which would be late, given the pace and spread of the pandemic.

Indians lining up for vaccine. At the current rate, the adult population of India won’t be vaccinated until 2023. Jagadeesh NV/AAP

How did it come to this?

There are three major reasons for this issue.

First, while many countries permitted a diverse basket of vaccines for domestic use, India limited its emergency approvals to just two — Covishield and Covaxin.

Covishield is the Indian name for the Oxford-AstraZeneca vaccine, produced by the Serum Institute of India. Covaxin, on the other hand, was developed jointly by India’s public sector and a private company named Bharat Biotech.

The reason appears to be a belief – based on zero evidence – that the two “Made in India” vaccines would be sufficient to meet India’s domestic needs and international commitments.

Read more: India's staggering COVID crisis could have been avoided. But the government dropped its guard too soon

For example, India could have granted emergency approval to the Russian vaccine Sputnik V, and the US-based Pfizer vaccine, in February 2021. Sputnik V was refused approval in February on the grounds that it had not supplied data on immunogenicity (immune response).

However, the same standards did not appear to have been applied to the other two vaccines – Covishield was given approval in January, even though its immunogenicity data were not yet available. Trial data from the UK, South Africa and Brazil published in The Lancet was considered adequate at the time.

Similarly, Pfizer was compelled to withdraw its application for emergency approval because the drug regulator insisted conducting a local bridging study would be necessary. However, Covaxin was given approval in January even when its Phase 3 data on efficacy were not available.

Second, the vaccine business is risky, given the amount of money that has to go into research, development, and testing, and many won’t end up being effective. Early public investments reduce risk exposure for vaccine companies and help raise their production capacities. Countries such as the United States, the United Kingdom and Germany made large at-risk investments in vaccine companies for research and capacity expansion. India failed to do so.

Third, India failed to place advance purchase orders for adequate quantities of vaccines. The first purchase order wasn’t placed until January this year. By this time, capacities of vaccine producers were already locked into other supply commitments elsewhere.

As a result, vaccination centres are being closed, and people are being turned away. In most cities, the mobile application – CoWin – used to book appointments for vaccination, isn’t allowing people to register. And even if people manage to register, appointments are not available for many months.

Charging Indians for COVID vaccines is bad, letting vaccine producers charge what they like is unconscionable Many Indians can’t get an appointment to be vaccinated. Jagadeesh NV/AAP

There is enormous public anger against the government of India for this, as well as for the serious flaws in its public health system which have been exposed by the sharp rise of infections in the second wave. This includes a lack of oxygen in hospitals and even a lack of space for funerals in crematoriums.

Read more: Why variants are most likely to blame for India's COVID surge

Vaccine price deregulation

In April the government of India undertook a curious policy shift in its vaccine policy. It deregulated vaccine prices. Vaccine producers could “self-set” the price for their vaccines. Consequently, the two vaccine producers steeply raised the prices of vaccines by two to six times in just a week.

For the same vaccine, the government of India, state governments and private hospitals have different price tags. And the only people in India who receive the vaccine for free are healthcare and frontline workers, and those aged over 45.

The vaccine prices are now so unaffordable that informal workers are forced to spend about half of the household’s monthly salary on vaccinating all the adult members of their households. While it may only be about 800 Rupees for both doses (A$14), when a person at the poverty line may only earn around 50 Rupees (A$0.87) a day on average, this is a large portion of their monthly income. Depending on the definition, one-quarter to one-third of the Indian population is below the poverty line.

The vaccine producers lobbied hard to “free” vaccine prices. One producer said in a television interview he was hoping for “super profits”, and another said he wished the “maximum price” for his vaccine.

The government’s decision to deregulate the vaccine prices allowed “super profits” for private companies, even as an economic and humanitarian crisis was building and unemployment was rising.

Read more: As pressure builds on India's Narendra Modi, is his government trying to silence its critics?

Predatory capitalism during human tragedy

Many commentators welcomed the new vaccine policy in the hopes increased prices would incentivise producers to increase supply. But they fail to see that vaccines are global public goods. They impart not just private benefits, but also social benefits, and so every barrier to vaccination must be minimised.

This is why most other nations, including Australia, the US, UK, Germany, France and China, are providing vaccines free of cost to all. India is an unfortunate exception to this global trend, and vaccines are now unaffordable to many.

Poor and faulty planning by the government of India has led to an acute shortage of vaccines. In the midst of the vaccine shortage, the government has effectively withdrawn from the social responsibilities of a welfare state. It has also opened the flood gates for a vulgar form of predatory capitalism to take the stage amid a raging human tragedy.

Authors: R. Ramakumar, Professor of Economics, Tata Institute of Social Sciences

Read more https://theconversation.com/charging-indians-for-covid-vaccines-is-bad-letting-vaccine-producers-charge-what-they-like-is-unconscionable-160529

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Accurate Measurements Matter When Ordering Flatpack Cabinets

Ordering flatpack cabinets can make a renovation or storage project more manageable, but the proce...

How Long Does Interstate Freight Take in Australia?

If you have ever arranged for stock, equipment or materials to travel from one Australian state to a...

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...