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April 25th, 2021 
Awake Goy “Our private sector has set an exemplary example of innovation and enterprise in developing COVID-19 vaccines,” said PM Modi: “We are lucky to have such a robust pharma sector that smoothly carries out production,” he said in his address to the country on 20 April 2021.
A notice about the shortage of Covishield vaccine outside a Covid-19 vaccination centre in Mumbai on April 20, the day Modi addressed. Photo: Francis Mascarenhas/Reuters
Modi’s speech marked a liberalized Vax policy:
Modi is known for good speeches, highlighted by a crony media that asks no questions; of course Modi never faces the media, beyond his Man ki baath : When Narendra Modi called for a tika utsav or vaccine festival between April 11 and April 14, the number of doses being administered during that period was actually lower than it had been on previous days in the month.
Union government, in its new vax poliy, has said that states can open up vaccination to any category of people above the age of 18. In its announcement the government said it was liberalising the vaccination program : it said that instead of vaccine manufacturers selling all their stock to the government, companies such as SII, Bharat Biotech and Dr Reddy’s (Covishield, Covaxin and Sputnik V) will now have to sell only 50% to the Union government. The remaining 50% doses will be supplied to state governments and in the open market.
“Vaccination shall continue as before in Govt. of India vaccination centres, provided free of cost to the eligible population as defined earlier i.e. Health Care Workers (HCWs), Front Line Workers (FLWs) and all people above 45 years of age,” the Union government said. It has also said that the second dose of existing priority groups and for those above the age of 45 will be given priority.
But shortages of vax, see photo above on the day Modi addressed the country, in Mumbai, not only the commercial capital but also the Covid epicenter now, haunt the covid scene, upsetting all calculations. Shortages and bottlenecks of infrastructure complicate the scene.
Times of India reported Modi regime is backing up …
Dr Harsh Vardhan, union Health Minister tweeted hailing Modi’s policy declaration.
World’s #LargestVaccineDrive given a massive booster shot. All citizens aged 18+ eligible to get inoculated with #COVID19 vaccines from May 1 Hail Hon’ble PM Sh @narendramodi Ji for liberalising vaccine pricing, procurement & distribution.
“It is not only the case that monopolist vaccine manufacturer will now have the ability to play off one Indian state against the other, but worse, piecemeal orders by each state will mean that we lose out on the ability to procure at scale on a set of reasonable terms,” commented an expert.
But it will take weeks and months to meet India’s needs. An estimate said it will take around two more years for India to vaccinate all those who need it, at the present pace and performance levels. It is a long road:
Those aged sixty-plus, estimated at around 110 million in India, are far from being covered though they were prioritized in phase-1, and needed to be given two doses. Union Govt data as of 7am of April 21, Times of India April 22 reported, showed only 8.4 percent population was given the first dose. And 1.4 percent were given the second dose too. But even as that was so, 45 plus began to be covered, and Modi announced 8 plus will be covered wef May1.
No proper maths was done, experts commented. Only political expediency mattered. Three more (out of 8) phases of Bengal polls, crucial for Modi team, were due when the PM made the alluring announcement, which must remain on paper given the shortages of stocks and bottlenecks in infrastructure.
Liberalized in Modi’s speech, but shortages are haunting, that is the ground reality. Former Union Health Secretary Mrs. Sujata Rao said the decision was political, backed by poor maths, and so the states will bear the brunt of public wrath given the shortages.
Why is the supply of vax constrained?
US is hoarding! Hurting India, its ‘democratic’ ally, and a QUAD pal.
Hoarding, at a time of world-wide pandemic? Hurting friends? Imperialism has no friends, it only has subordinates. Pandemic is the time profits are maximized. We have seen how the number of billionaires was up phoenix-like, across the world, and in India too, even while the whole world was gasping for breath, aggravated by media hype to create a scare. Pharma sector was in the top league in making profits.
Is it sudden, and local to India? No. See this OLD report by Marketplace , Mar 9, 2021:
“COVID-19 vaccine manufacturers around the world are meeting today to discuss a looming supply chain problem: not enough raw materials and supplies to go around. And among the countries accused of hoarding these items? The United States,” says a report.
CEO Adar Poonawalla said at a panel on March 4 that American raw materials are running out. These items are being blocked from export due to Biden administration policy, he said.
Marketplace asked the White House for comment, but did not hear back before deadline. As the whole world ramps up vaccine production, key ingredients could run out. It is part of a trade war…some in India relished, as they believed, it hurts China and opens up opportunities to Indian businesses. And US invoked a law for it:
“To speed up vaccine production, the Biden administration has invoked the Defense Production Act. The law, which dates back to World War II, lets government cut to the front of the customer line for critical items made by U.S. companies.
“This essentially enables the U.S. government to tell a supplier to ship the goods, in this case, to Johnson & Johnson,” said Simon Evenett, trade economist at the University of St. Gallen in Switzerland. “And those supplies, which were potentially destined to another customer, are of course then diverted.”
Who are hurt? India, and its Serum Institute of India (SII) are hurt. It is said to be the world’s largest vaccine producer,that has contracts to produce the AstraZeneca and Novavax vaccines. Unhappy customers bumped back in the queue include international vaccine makers, effectively blocking exports.
And a great soft power, hitech and nuclear power, India is hurt ! What are being blocked, any nuclear materials?
“It’s true that the components in short supply are inexpensive, sometimes low-tech items. But until now, there’s been no business case to build more factories to crank them out.”
“There are a lot of bags and filters and critical items that manufacturers need,” Poonawalla said at the event, sponsored by the World Bank. “Now I’ll give you an example: the Novavax (SII makes it, hopes to launch it in weeks ahead, besides Covishied) vaccine needs these items from the U.S.”
“Unless production of what’s called the filling stage, as well as the syringes — unless this all scales up, too, there’s a potential for a problem,” Evenett said.
And there is a proud NRI or PIO, our elite friend, defending the US imperialists’ action: “Krishna Udayakumar defended the Biden administration’s decision to invoke the Defense Production Act for vaccines, allowing drugmaker Pfizer to potentially hit its production target of 2 billion doses by year’s end.
“There’s no market and there’s no margin that will allow capacity to be built up over time,” said Krishna Udayakumar, associate director of the Duke Global Health Institute. “So we really have to invest in building that capacity.”
Is it only to help US, the American people on a priority, who are reeling under the pandemic? No. It is meant to help US exports, i.e., a commercial reason:
“That certainly is not just for the U.S.,” Udayakumar said. “That’s several times what the U.S. could use. So our ability to ramp up production will allow many other countries to also access those vaccines.”
US is using mostly vax made by American MNCs Pfizer, J&J and Moderna, and wants to export them too. The US FDA has cleared only these brands, a sign of nationalism by US that preached globalization for others. J&J is also there, was given to 8 million Americans, restrained for some time, but cleared again latest news indicates. …
The looming vaccine material shortage presents the same dynamic as personal protective equipment and ventilator scarcity at the start of the pandemic: a surge in world demand, not enough to go around and countries wanting to keep supplies at home.
For more info visit https://www.marketplace.org/2021/03/09/indian-drugmaker-says-u-s-is-hoarding-vaccine-ingredients/
The U.S. Is Sitting on Tens of Millions of Vaccine Doses the World Needs:NYT
The above is the title of a report, see extracts below, in New York times, March 11, 2021.
BBC reported last week that USA is yet to clear the Astra zeneca AZ vax, allegedly because of the risk of clots in blood following vaccination. It said:
“Based on figures from the UK medicines regulator, if 10 million imaginary people were given the AZ vaccine, you might expect to see 40 of these clots. About 10 people would die – a one-in-a-million chance. That’s roughly the same risk as being murdered in the next month or – if you get in a car and drive for 250 miles – the risk of dying in a road accident on that journey.”
https://www.bbc.com/news/world-56763490
But that was enough for USA to block the AZ vax,. They would not allow it to be exported too. AZ was cleared by more than 70 countries, including India, and they are desperately short of the vax. NYT reported:
Tens of millions of doses of the coronavirus vaccine made by the British-Swedish company AstraZeneca are sitting idly in American manufacturing facilities, awaiting results from its U.S. clinical trial while countries that have authorized its use beg for access.
The fate of those doses of AstraZeneca accine is the subject of an intense debate among White House and federal health officials, with some arguing the administration should let them go abroad where they are desperately needed while others are not ready to relinquish them, according to senior administration officials. AstraZeneca is involved in those conversations.
“We understand other governments may have reached out to the U.S. government about donation of AstraZeneca doses, and we have asked the U.S. government to give thoughtful consideration to these requests,” said Gonzalo, a spokesman for AstraZeneca.
About 30 million doses are currently bottled at AstraZeneca facility in West Chester, Ohio…
Emergent BioSolutions, a company in Maryland that AstraZeneca has contracted to manufacture its vaccine in the United States, has also produced enough vaccine in Baltimore for tens of millions more doses once it is filled into vials and packaged, the official said.
But although AstraZeneca(AZ) vaccine is already authorized in more than 70 countries, according to a company spokesman, its U.S. clinical trial has not yet reported results, and the company has not applied to the Food and Drug Administration for emergency use authorization.
AstraZeneca has asked the Biden administration to let it loan American doses to the European Union, where it has fallen short of its original supply commitments and where the vaccination campaign has stumbled badly.
Was AZ caughtup in political and business rivalries, and safety concerns only an alibi? See these lines from the NYT report:
“Last May, the Trump administration pledged up to $1.2 billion to AstraZeneca to finance the development and manufacturing of its vaccine, which it developed with the University of Oxford, and to supply the United States with 300 million doses if it proved effective. Federal officials and public health experts last year viewed the vaccine, which is less expensive and easier to store for long periods than some other vaccines, as (Azs)most likely to be among the first to receive authorization. ..That never happened, in part because of a pattern of communication blunders by AstraZeneca that weakened the companys relationship with American regulators and slowed the vaccines development…”
Only an alibi? NYT reported:
“European official and the company said there was not evidence of any causal link. In the vast majority of cases, the emergence of such medical conditions has nothing to do with the vaccine. Some percentage of people are expected to fall ill by chance after getting vaccinated, as would happen in any group of people.”
(see for more: https://www.nytimes.com/2021/03/11/us/politics/coronavirus-astrazeneca-united-states.html)
But that did not move the Biden Admin. Safety argument for some time, and then America First policy…
Modi regime made some pleas: In the address at Leaders’ Summit on Climate 2021, 22 Apr, 2021, the PM said: “I would like to thank President Biden for taking this initiative…Humanity is battling a global pandemic right now…”
He reminded : “India-US climate and clean energy Agenda 2030 partnership”. Together, we will help mobilise investments, demonstrate clean technologies, and enable green collaborations. The same day came news US did not relent (see below.)
India earlier made some diplomatic moves too, as reported by PTI: In recent weeks, India’s Ambassador to the US Taranjit Singh Sandhu has been taking up the matter with the Biden administration officials…During the telephonic conversation between US Secretary of State Blinken and External Affairs Minister S Jaishankar, the two top diplomats also discussed the coronavirus pandemic and ways to deal with it…but to no avail.
Modi even made a philosophic, yet political speech on April 13, in Raisina dialogue, held by a joint forum of MEA-ORF. Focused on “geo-political and geo-economic” scenario, with pro-US and anti-China slant, with a QUAD mindset, it represents the bondage of the Modi govt with Comprador Big Business. He said:
“This sixth edition of Raisina dialogue takes place at a watershed moment in human history. A global pandemic has been ravaging the world for over a year…Is it perhaps because in the race of economic development, the concern for welfare of humanity has been left behind.
“Is it perhaps because in the age of competition, the spirit of cooperation has been forgotten…all the steps taken were like treating a patient symptoms without addressing the underlying causes.
“The Covid-19 pandemic has presented us an opportunity to reshape the world order, to reorient our thinking. We must create systems that addresses the problems of today and challenges of tomorrow. And we must think of the entire humanity and not merely of those who are on our side of the borders. Humanity as a whole must be at the center of our thinking and action…
“That is why, this year despite many constraints, we have supplied vaccine to over 80 countries… It matters as much to the citizens of the richest countries as it does to the less fortunate. And so we will continue to share our experiences, our expertise and also our resources with the entire Humanity in the fight against the pandemic…
“As we gather virtually at the Raisina dialogue this year, I call upon you to emerge as a powerful voice for a human centric approach, As how said elsewhere while we may be used to having Plan A and plan B, there is no Planet B, only planet Earth. And so we must remember that we hold this planet merely as trustees for our future Generations…”
Obviously his regime pleaded with Biden-led US, its natural, democratic ally, as opposed to China, through several channels.
But Biden the Shylock was unmoved.
See the latest news from Washington. It vividly reveals the imperialist mindset of USA, note remarks added in parenthesis. The PTI report of April 23 is given this title by indiatvnews.com:
“US defends restrictions on export of COVID-19 vaccine raw materials amid India’s request to lift ban.”
It reads:
Defending US’ restrictions on the export of key raw materials for the manufacture of COVID-19 vaccine that threatens to slow India’s vaccination drive, a senior State Department official has said the Biden administration’s first obligation is to take care of the requirements of the American people.
When asked when the Biden administration would decide on India’s request to lift a ban on the export of vaccine raw materials, State Department spokesperson Ned Price said: “…the United States first and foremost is engaged in an ambitious and effective and, so far, successful effort to vaccinate the American people. ”
(Just an excuse, as it did not allow massive stocks of AZ vax, idle and unused in USA, to be exported, despite pleas by many including AZ itself. Nor allowed export of raw materials, as NYT report showed above.)
“That campaign is well underway, and we’re doing that for a couple of reasons. Number one, we have a special responsibility to the American people. Number two, the American people, this country has been hit harder than any other country around the world – more than 550,000 deaths, tens of millions of infections in this country alone,” he said on April 22.
It is not only in the US interest to see Americans vaccinated; but it is in the interests of the rest of the world to see Americans vaccinated, he said.(America First , at the expense of others, is good for the entire world, we are told. See the queer logic below.)
“The point the Secretary (of State Antony Blinken) has made repeatedly is that as long as the virus is spreading anywhere, it is a threat to people everywhere. So as long as the virus is spreading uncontrolled in this country, it can mutate and it can travel beyond our borders. That, in turn, poses a threat well beyond the United States,” Price said in responses to questions.
As for the rest of the world, “We will, of course, always do as much as we can, consistent with our first obligation,” he said. (That is in words only.)
India is currently facing a horrible surge in coronavirus infections. The country on Apr 23 Friday added a record over 3.32 lakh new coronavirus cases in a single day taking the country”s tally to 1,62,63,695, while active cases crossed the 24-lakh mark.
The Biden administration recently conveyed to New Delhi that it understands India’s pharmaceutical requirements and promised to give the matter due consideration.
It observed that the current difficulty in the export of critical raw materials needed to manufacture COVID-19 vaccines is mainly due to an Act that forces American companies to prioritise domestic consumption. (But how does it prevent export of idle stocks? And can they not make an exception in times of a pandemic?)
President Joe Biden and his predecessor Donald Trump had invoked the war-time Defence Production Act (DPA) that leaves US companies with no option but to give priority to the production of COVID-19 vaccines and Personal Protective Equipment (PPEs) for domestic production to combat the deadly pandemic in America, the worst-hit nation.
The US has ramped up the production of COVID-19 vaccines mostly by Pfizer and Moderna to meet the goal of vaccinating its entire population by July 4.
The suppliers of its raw materials, which is in high demand globally and sought after by major Indian manufacturers, are being forced to provide it only for domestic manufacturers in the US.
The Serum Institute of India is the world’s largest producer of the COVID-19 vaccine.
State Department spokesperson Price said the US has played a leadership role when it comes to containing, seeking to contain the virus beyond its borders.
“We have re-engaged with the WHO on day one, the USD 2 billion we’ve contributed to COVAX, with 2 billion more on the way. When it comes to our own hemisphere, the loan arrangement with Canada and Mexico, and when it comes to India, the Quad and the arrangement with the Quad, including to increase production capacity in India,” he said. (That is credit business, no mercy, useful to US in times of a slump.)
“So as we are more comfortable in our position here at home, as we are confident that we are able to address any contingencies as they may arise, I expect we’ll be able to do more,” he said.
(They are comfortable by making others uncomfortable. See this in the light of NYT report above, imperialism can be seen naked.)
The reports above belie the tall claims of India as a great power, a hitech soft power house, expose the fake nature of Swadeshi and Make in India, and reveal its continued dependence on imperialism, exposing sham independence in this 75th year of celebrations.
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A Comprador has no freedom: the case of SII
AZ vax, Covishield, unlike Covaxin, is not indigenous as made out, as misrepresented by Swadeshi lobby led by Modi. It is a product of Swedish Astra plus UK Zeneca, MNC, a pharma-biotech major with Hq in UK. It is developed by AZ in tech coop with Oxford Univesity. Serum India Inst of Pune is a Make in India subsidiary for AZ vax, which is not indigenous strictly speaking. That is how AZ vax made in US facilities is not being allowed to be exported, as seen in NYT report above: Hegemonist US does not allow even the UK-Swedish MNC, a product by its Nato-ally, (mis-)using a Defence law! That is how transactions are stifled by so-called Rule-based international regimen about which QUAD brags, and yes-man India subserves, blaming China.
AZ being not strictly Indian, till 19 March, India sent out 5.96 crore doses of vaccine to foreign nations, which is almost 50 per cent more than its domestic consumption. Of these, 3.41 crore are commercial exports. After March 24, exports were stalled as pressure built up within India.
The dependence plight of SII, AZ manufacturers, a legal notice by the master, is explained by none other than its CEO. In an interview of April 14, 2021, he explained (see extract below):
‘I don’t think anybody would want to be in my position today where every head of State has to be explained that I am prioritising my country because there is a surge in cases.’
The Serum Institute of India, the world’s largest vaccine maker, is juggling between meeting demands in its own country and its international commitments.
SII CEO Adar Poonawalla, in an interview, April 14, 2021, to Sohini Das of
Business Standard, says that AstraZeneca has served a legal notice to the firm for delays in supplying the vaccine, and that SII has sought “a few thousand crores” as grant from the government to double the production of Covishield.
Is shortage of raw materials coming in the way of scaling up production?
Yes, it is happening because the US has invoked the Defence Act and banned export of raw materials. This is as good as banning vaccines. All vaccine producers are facing difficulties because of this.
It has already stalled the Novavax vaccine’s production. Stock-piling of Novavax would happen to the tune of 50 per cent more if we had access to US raw materials.
Till the month of April, it was not really coming in the way. From this month onwards, whatever we stockpile of Novavax would be half of what we could do, had it not been for US restrictions.
There is a long list of raw materials which we import from the US — filters, bags, certain media solutions, etc. To develop new suppliers in the eleventh hour will take a bit of time.
We will do that. We will not be dependent on the US after six months. The problem is we need now. (Great power India could not make such things? Swadeshi is so bankrupt …seven years after the Modi arrival.)
India the comprador is helpless… Dr. Soma Marla wrote in CC on April 20, 2021:
“Two Indian vaccine manufacturers are producing nearly 60 million doses a month. The daily production of 20 lakh doses against the administered 36 lakh doses is the prime reason for current vaccine short fall seen across the nation. In February this year US administration has imposed export restrictions on supply of 37 essential chemical ingredients apart from special pumps and other filtration equipment to other countries. The invoked defence production act is aimed at helping American pharmaceutical industry to increase domestic vaccine production. The fact is, USA was proactive and already vaccinated nearly 25 percent of it’s adult population ahead of many other developed Western nations. Besides, USA has stockpiled sufficient stocks to vaccinate entire population.”
https://countercurrents.org/2021/04/lift-usa-embargo-on-the-export-of-vaccine-raw-materials/
How compradors behave, and succumb to pressures can be seen below.
***
“Never heard of anything more preposterous”: Former Union Health Secretary
“These past 73 years, Government of India has been supplying drugs and vaccines for infectious diseases under the National Program to the states. This is the first time I am seeing, and at such a critical time, central government abdicating its responsibility and leaving the states to buy their own vaccines at a price to be determined by the suppliers and at a price to be fixed by the companies! Never heard of anything more preposterous than that.”
That was what Former Union Health Secretary Mrs. K Sujata Rao said and cautioned “this liberalised vaccine policy will raise more questions than it answers. Interstate infectious disease control is on the concurrent list and so is a shared responsibility,” she said in emailed remarks to Bloomberg Quint, April 22 2021.
Government can order, it has all the powers, more so under conditions of a medical emergency of a pandemic, but did not act till now. Modi instead is all praise for “innovation and enterprise” of the private sector. Contrast this to Modi regime’s response to farmers movement.
By permitting the participation of states and the private sector in procurement and delivery of vaccines, has the central government made way for an acceleration of the Covid-19 national vaccination programme or has it simply passed on the burden to states, private entities and citizens? she asked.
The former Health secretary, while endorsing their use, candidly mentioned the dubious and limited value of these vaccines as of now: They do not prevent, nor cure the infection. They are supposed to provide protection by reducing severity, and almost eliminating mortality. When does the protection kick in? Not sure. How long does the protection last? An year, or more, or six months only? Not yet established, as permissions were given under emergency conditions. But with all that, they could dictate their price and profits, with deleterious effects on the people and the country, more so in months to come.
Super profits: “Union government has succumbed to the pressure” of corporates
R Ramakumar, a Professor at the Tata Institute of Social Sciences in Mumbai commented, in an article, in scroll.in Apr 20,2021 :
“The Union government’s decision to deregulate vaccine prices in the midst of the pandemic is a generous gift to private vaccine companies. This gift is in addition to the Union government’s decision to provide new credit lines of Rs 3,000 crore to the Serum Instute of India and Rs 1,500 crore to the Bharat Biotech to help them expand capacities. Both companies are also likely to be among the recipients of the Union government’s research and development grants worth Rs 900 crore under the Covid Suraksha Mission.
“Regardless of such generosity, the vaccine producers insisted on their right to make super profits, and the Union government has succumbed to the pressure.”
However, more importantly, the Union government also announced a series of new measures that would essentially liberalise vaccine sales and deregulate vaccine prices.
There is genuine fear that these new guidelines will make vaccines unaffordable and exclude millions of India’s poor from access to vaccines.
Until now, the Union government has been supplying vaccines to states free of cost. The Serum Institute, which produces a vaccine named Covishield, and Bharat Biotech, which makes Covaxin, were selling their products to the Union government at subsidised prices.
Excluding taxes, Covishield was sold at Rs 150 per dose while Covaxin was sold at Rs 206 per dose.
However, both these companies were unhappy at being asked by the Union government to sell at these subsidised prices. They and other industry bodies were lobbying for the price ceiling to be removed and for the freedom to sell vaccines in the open market.
It should be noted that even the subsidised price of Covishield and Covaxin provided a normal profit per dose to both firms. Serum Institute CEO Adar Poonawalla confirmed this in an interview to NDTV on April 6.
“Is it still profitable today, on a per dose basis? Yes, absolutely,” he said. “…I would not say we are not making any profits, but we have sacrificed what we call super profits.”
He added that the Serum Institute would be content with normal profits only for “a temporary period”. On super profits, he said, “We can always make those profits after a few months.”
It was not months, but only after a few weeks that he would get what he wanted. Not exactly succumbing to pressures, as Ram Kumar suggested.
Modi is more than willing to reward them, after all he is at their service, as he praised : “Our private sector has set an exemplary example of innovation and enterprise in developing COVID-19 vaccines.”
The liberalized price will vary from brand to brand, from state to state, and for Govt and private sectors, and for different age groups. Even as the Modi regime makes claims about its policy to promote generics, the Vax is thrown into a mode where private manufacturers, suppliers, and corporate sector hospitals will mint huge, unregulated profits.
SII CEO Adar Poonawalla had said back in January that the price in the private market of Covishield will be Rs 1,000 per dose, translating to Rs 2,000 for both doses.
Russia’s Sputnik V, to be distributed in India by Dr Reddy’s, is reported to be imported by May-end or early June. For its price in India, Dr Reddy’s co-chairman GV Prasad said it will continue to be the same as Sputnik’s global price — $10 (~Rs 750) per dose, or roughly Rs 1,500 for both doses. The price could be lower once production starts in India, he added.
The govt does not use its authority, but allows the pharma companies to have a field day, at this time of a pandemic, and Depression when people are deprived of earnings. It is friendly to corporate, nor people. It buys at a higher price, and even if it supplies part of it free of cost, it is at the expense of public exchequer, the people at large.
Tailpiece: A comprador is a comprador, with Indian characteristics. It has Indian values, features like Kumbh Mela. In lighter vein, see photo below:
Ramakrishnan is a mediaperson
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