Course correction on vaccine

Transparent supply formula must accompany central procurement

In his address to the nation on Monday, Prime Minister Narendra Modi announced a revision to the government’s vaccine roll-out programme, as well as addressing some other aspects of the fight against Covid-19. Most importantly, the prime minister said the attempt under the liberalised vaccine procurement policy to decentralise some procurement of vaccines to the states was being reversed. This followed a period in which some state governments sought to float global tenders, only to be told by foreign vaccine manufacturers that they would negotiate only with the Union government. The prime minister clarified from June 21, 75 per cent of available vaccines would be bought by the Union government, with the remaining 25 per cent being sold to the private sector. The government’s store of vaccines would then be distributed to state governments, and all vaccines through the government route — both those intended for Indians above the age of 45 as well as those for Indians between the age of 18 and 44 — would be free.

The return to centralised purchasing is welcome, as it is clear that this would be the most efficient form of procurement. But the question of how these vaccines are to be distributed among states, the most vexed policy question in this domain, has not been clearly answered. The prime minister did say that states would be informed in advance of how many vaccines to expect. But there needs to be a transparent and fair formula announced, preferably with the agreement of stakeholders in the state governments. After all, the central problem remains one of supply scarcity, making the question of distribution vitally important. It is not certain at all how the Union government intends to solve the question of supply, although the prime minister’s address touched on the large number of vaccines in the pipeline. It is not clear how and when potential vaccines will get regulatory clearance, and thus whether the goal of vaccinating all those above the age of 18 by the end of the year will be met. The government’s next goal must thus be enhancing supply, providing a clear timeline for the arrival of more vaccine doses, and providing a transparent mechanism for distributing the centrally procured vaccines to the states.

The prime minister’s decision to keep a quarter of vaccines put out by the private sector is praiseworthy, as this channel supplements the often creaking government machinery and is also a crucial source of funds for further investment by vaccine manufacturers. It is unfortunate, however, that a cap of Rs 150 on service charges from the private sector has been set; hospitals should be allowed to charge a remunerative service fee in order to induce investment in distribution. The prime minister also did well to address the question of misinformation about vaccines, but this needs to be followed up by a serious campaign against misinformation and vaccine hesitancy that penetrates even rural areas. The announcement that the distribution of food grains under the Pradhan Mantri Gareeb Kalyan Yojana would be extended till Diwali is both welcome and a reminder that the Union government, through schemes such as the public distribution system, has a wide reach. It might be sensible, for example, to connect education about vaccines to the food ration distribution mechanism. Other new ideas to combat misinformation will have to be devised.