Covid Crony Capitalism and Public Health in India

Posted on : May 9, 2021
Author : Sristhi Ghosh

The ongoing COVID-19 pandemic has exposed India to the worst of its public health crisis. With more than four lakh cases and thousands of bodies piling up at crematoriums a day, the catastrophic crisis is worsening. India’s second wave of pandemic is unprecedented, even more brutal and devastating than its first.[i] While the health care sector is hugely strained and overburdened due to the ‘great tragedy’[ii], what worries further are the issues of inaccessibility and shortage of basic medical facilities and lifesaving resources like testing kits, medical oxygen, medical drugs besides non availability of hospital beds and ambulance service. The undesirable factors associated with crony capitalism and woeful practice of black marketing internally too has amplified the misery of the people of India.

The panic of pandemic opened up new avenues for the resurfacing of the ever existing problem of crony capitalism. The inability of the government to regulate private market forces and prevent harmful entrepreneurs from rigging the pharma market in such time of medical emergency has escalated social sufferings of commoners. India is experiencing challenges of unnecessary hoarding, black marketing, unlicensed trading and exploitative overpricing of essential medicines necessary for the treatment of those infected with COVID-19. Such misuse of access to resources for sake of profitability has resulted in an acute shortage of life saving drugs, needless to mention the consequences. Since the time Wuhan virus hit India, the government under emergency empowered private companies the permission to manufacture and sell certain drugs ensuring availability[iii]. However, India’s failure in regulating such medical supplies encouraged misuse of this power.

There is an acute shortage of Remdesivir and Tocilizumab, two essential lifesaving drugs, troubling the public and private health care workers. Delhi’s top hospitals complained, Remdesivir is only available in the black market as there is a shortage of supply, costing between Rs 45000 – Rs 70000, as against the MRP of Rs 5,400.[iv] India Today’s[v] investigation adds tension to how ‘sharks’ in the pharma supply chains are exploiting the grim situation, selling the medication by obscene amounts, with no real guarantees about the genuineness of the drug. “You need four [vials], right? It will cost Rs 80,000.” Sam Yadav told India Today TV’s reporter. While for Dr TV Narayana, (President of Indian Pharmaceutical Association) the blame entirely is on how private companies deviate from adhering to the prescribed distribution norm of directly supplying the drug to the hospitals[vi], one must also acknowledge the inability of the Indian government along with respective state governments in instilling allocative agreements along with ensuring strict vigil on product supplies.

Oxygen crisis amid rising Covid-19 cases is no more a secret. The ongoing crisis has turned social media into catalogue of frantic people searching for oxygen cylinders and concentrators. Hospitals too have repeatedly sent out SOS alerts over shortage of medical oxygen[vii]. In such a situation, people are forced to procure medical oxygen by themselves for which they rely on private dealers’ contacts circulating on social media. While only few are genuine, most of the contacts turn out to be shrewd black-marketers and scammers looking to capitalize on the situation. As Public Health Expert Amulya Nidhi, from the public health forum Jan Swasthya Abhiyan informed; there’s no limit to the price being asked for oxygen cylinders and Remdesivir on the black market.[viii] Such a black market crisis is artificially created as people are unnecessarily hoarding essential medicines, equipments like oximeters, inhalers and cylinders- some due to panic, others for the sake of profitability. Oxygen, which is probably the most crucial medicine for treating Covid-19 is now beyond affordability of the Indian middle-class. It is indirectly responsible for the deaths of patients who don’t have ‘connections’ and money. Responding to the misery, the Delhi High Court said it had received information that an oxygen cylinder was being sold for Rs 1 lakh (£965) and asked the city government to take action.[ix] The Indian government needs to crackdown on the unlicensed manufacturing and dealing of oxygen, introducing a transparent and systematic regime without which the oxygen crisis is unlikely to die. Citing central government’s incompetency, the Delhi High Court suggested the Union to hand-over management of oxygen tankers to IIMs and IITs to ensure its smooth supply.[x]

India is in a state of crisis. As such, the state has failed to protect the right to life, a basic yet the most crucial fundamental right guaranteed under Article 21 of the Indian Constitution. “We can only say that the state has failed to protect the right to life of people guaranteed under Article 21 of the Constitution”[xi], said the Delhi High Court after a four hour hearing on 30^th April 2021. While the Supreme Court explicitly declared the proper treatment of Covid 19 patients and affordable treatment a fundamental right to health under scope of Article 21[xii], such a guarantee clearly lacks implementation. Patients have been dying a painful death, gasping of breath due to shortage of medical oxygen in hospitals added with issues related to faulty supply chain and poor infrastructure. Medical professionals are failing to attend all ailing patients. With most hospitals reporting zero availability of bed and infrastructure, patients are dying without treatment. By neglecting public health, India fails to abide by the provisions of Universal Declaration of Human Rights to which India is a signatory. Article 25 of the UDHR[xiii] states “Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care…” Citing Supreme Court’s verdict in Paschim Bangal Khet Mazdoor Samity vs State of West Bengal (1996) “Article 21 imposes an obligation on the State to safeguard the right to life of every person. Preservation of human life is thus of paramount importance. The Government hospitals run by the State and the medical officers employed therein are duty bound to extend medical assistance for preserving human life. Failure on the part of a Government hospital to provide timely medical treatment to a person in need of such treatment results in violation of his right to life guaranteed under Article 21.”[xiv]

Sirsthi Ghosh

Intern, Asia in Global Affairs

The views, thoughts, and opinions expressed in the text belong solely to the author, and do not in any way reflect the point of view of Asia in Global Affairs.

[i] https://www.reuters.com/world/asia-pacific/india-posts-record-daily-rise-covid-19-cases-401993-2021-05-01/ (Accessed 1^st May, 2021)

[ii] https://timesofindia.indiatimes.com/world/us/kamala-harris-coronavirus-situation-in-india-tragic-have-committed-support-to-them/articleshow/82337748.cms (Accessed 1st May, 2021)

[iii] https://www.news18.com/news/india/profiteering-in-pandemic-india-sees-overuse-black-marketing-of-covid-19-drug-remdesivir-govt-steps-in-2711099.html (Accessed 1st May, 2021)

[iv] https://theprint.in/health/rs-60000-for-a-rs-5500-vial-how-remdesivir-black-market-thrives-as-covid-cases-rise/468695/ (Accessed 1^st May, 2021)

[v] https://www.indiatoday.in/coronavirus-outbreak/story/inside-the-black-market-of-remdesivir-as-shortages-spur-demands-1792995-2021-04-20 (Accessed 1st May,2021)

[vi] https://www.outlookindia.com/website/story/india-news-life-saving-covid-19-drug-sold-in-black-market-in-delhi-at-10-times-its-cost/356267 (Accessed 2nd May, 2021)

[vii] https://www.livemint.com/news/india/lives-at-risk-delhi-hospitals-send-out-sos-for-oxygen-at-night-11619310721915.html (Accessed 2nd May, 2021)

[viii] https://www.independent.co.uk/asia/india/india-covid-black-market-cases-b1838476.html (Accessed 3rd May, 2021)

[ix] https://www.independent.co.uk/asia/india/india-covid-black-market-cases-b1838476.html (Accessed 3rd May, 2021)

[x] https://twitter.com/ANI/status/1389496271254147073 (Accessed 4^th May, 2021)

[xi] https://in.news.yahoo.com/covid-19-state-failed-protect-140816714.html (Accessed 3rd May, 2021)

[xii] http://www.legalservicesindia.com/law/article/1768/10/Fundamental-Right-To-Health-Includes-Affordable-Treatment-SC-Suggests-Cap-On-Fee-Charged-By-Private-Hospitals (Accessed 3rd May, 2021)