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PPE hub to combat counterfeits

03 Jan 2021

The ongoing pandemic has made personal protective equipment (PPE) a mainstay in almost every household around the world. According to a report by Research Dive, an international market research firm based in India, the pandemic’s positive impact on the industry is now anticipated to generate a revenue of $ 93.5 million by 2026, rising at a CAGR (Compound Annual Growth Rate) of 10% throughout the forecast from 2019 to 2026. The increased awareness of personal safety and the strict guidelines placed on global governments by international health authorities such as the World Health Organisation (WHO), have been a key driver in this increase in demand. This has led to a notable increase in the import of PPE commodities, including the likes of facemasks, gloves, gowns, and safety eye wear. In Sri Lanka, the demand for these PPE began during the first outbreak in March 2020, as local health authorities enforced the guidelines provided by WHO. As a result, many institutions have become involved in the process of importing PPE, such as the KN95/N95 masks, to the country. However, this increase in demand has led to the rise of many fake PPE dealers across the country, which has created an unpleasant situation for both registered importers and buyers in Sri Lanka. According to PPE Importers Lanka, 95% of sellers in the local market are not authorised to be selling these PPE.    Knock-off products flooding the market   “Consumers are getting tricked by these low-quality items, and they will not protect anyone from the Covid-19 pandemic. This has also led to the supply of KN95/N95 masks going into the hands of many unwanted and fake dealers, coming in between more legitimate deals,” said the organisation’s President Janaka Vithanage. To combat the growing impact of these fake dealers, PPE Importers Lanka launched Sri Lanka’s first PPE hub, which is set to bypass fake dealers, and link buyers directly with certified local importers. Speaking to The Sunday Morning, Vithanage stated that the hub will host 20 local PPE importers, who will offer a variety of different PPE products, including KN95 brands, surgical masks, face shields, and KN95 masks for kids. He claimed that this hub will create the biggest marketplace for Sri Lanka’s PPE industry, with a diverse selection in terms of quality and price. “We created this PPE hub for the end buyers to directly link up with the proper importers, and purchase PPE with little to no intermediaries. Our goal is to pass the cost benefit directly to this end buyer and the public.” He stated that the main goal of the PPE hub is to help stabilise the industry, and combat the unethical parties who are taking advantage of the current, desperate climate. He went on to state that they have also reached a decision with the Government to intensify raids on illegal and low-quality PPE products in the market, while they will operate under the guidance of the Health Ministry.    Government intervention   Furthermore, Vithanage stated that the organisation is currently working with State Minister of Production, Supply, and Regulation of Pharmaceuticals Prof. Channa Jayasumana, to solve other glaring issues in the sector, such as the unnecessary import of PPE into the local market. PPE Importers Lanka made a collective request from the Government in the third week of December 2020 to halt such unnecessary PPE imports, following a stakeholder discussion held on 17 December. Speaking to us earlier, Vithanage stated that the organisation made this collective request from Prof. Jayasumana to ensure smooth business continuity in the local market. “The industry was in a crisis; we have 20 importers on board who were all facing the same kind of issues. Our national requirement for PPE, such as masks, is around 1.5 million pieces per day, while we ourselves have around 20 million pieces; so the initial lack of restrictions created a surplus in PPE,” said Vithanage. This initial lack of restrictions resulted in the import of over 20 times the national requirement for PPE. Vithanage explained that this left importers unable to sell their stocks, causing the prices of PPE, like masks which were over Rs. 100 before December, to drop down to around Rs. 40-50. He claimed that while there were restrictions placed on imports such as electronics and automobiles to keep money in the country, billions of rupees were still being wasted on this surplus of PPE. He went on to stress that this lack of restrictions was another reason for the rise in fake dealers in the current market. However, as of the last week of December, Vithanage reported that Prof. Jayasumana extended his aid to local importers by completely stopping the import of PPE products that are currently available in excess, such as KN95 masks, until such time the stocks are depleted. "This is very beneficial for the local PPE importers, since our sector was polluted by these unauthorised importers. But thanks to Prof. Jayasumana, who heard our request and immediately gave us his aid in solving these issues, we are back on track." Once this need to replenish stocks arises, he explained, only the registered members of PPE Importers Lanka will be given the opportunity to import more products and sell them on the new PPE hub. 


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