विज्ञप्तियां उर्दू विज्ञप्तियां फोटो निमंत्रण लेख प्रत्यायन फीडबैक विज्ञप्तियां मंगाएं Search उन्नत खोज
RSS RSS
Quick Search
home Home
Releases Urdu Releases Photos Invitations Features Accreditation Feedback Subscribe Releases Advance Search
home  Printer friendly Page home  Email this page
English Release 22-November 2014
Date Month Year
  • President's Secretariat
  • State Civil Service Officers Undergoing the 116th Induction Training Programme At Lbsnaa Call On The President
  • Vice President's Secretariat
  • Vice President Emphasizes the Need for Continual Oversight to Ensure that Liberty is not Smothered in Material Prosperit
  • Min of Defence
  • National Cadet Corps Celebrates 66th Anniversary
  • Ministry of Finance
  • Competition Commission of India (CCI) Invites Comments from Public in Respect of Proposed Combination Between Holcim Limited and Lafarge S.A.
  • Min of Health and Family Welfare
  • Press Note on Ebola
  • Min of Information & Broadcasting
  • Team Of ‘Gour Hari Dastaan: The Freedom File’ Meets the Press at the 45TH IFFI
  • Directors and Producers of Indian Panorama Opening Films in the 45th IFFI Interact with the Media
  • Indian Philosophy of Mutual Respect and Love are My Source of Inspiration: Paul Cox
  • ‘Salam Cinema’ Screening Opens Mohsen Makhmalbaf Retro
  • Min of Petroleum & Natural Gas
  • Review of Modified DBTL scheme after one week of launch on 15.11.14 in 54 districts
  • Ministry of Water Resources
  • Government to Start Jal Gram Scheme in Every District Says Uma Bharti
  • Our District-Our Water Programme to be Launched to take the Message of Water Conservation to Every Village of the Country-Uma Bharti

Previous Date

 
Ministry of Finance06-December, 2012 18:59 IST
GAP between WPI and CPI; Government and RBI takes Several Measures to Contain Inflation

 

 

            Year-on-year inflation in October, 2012 measured in terms of Wholesale Price Index (WPI) and the Consumer Price Index (CPI) (New series) was 7.45 per cent and 9.75 per cent, respectively. The details of the level of WPI and CPI (NS) and the rate of inflation are indicated below.

 

Table: Comparative weights, base, indices and inflation of WPI and CPI

Composition of Indices

Index

Inflation (%)

Wholesale Price Index (Base: 2004-05=100)

General and group

Weight

Oct. 11

Oct. 12

Y-o-Y

Headline WPI

100.00

157.0

168.7

7.45

Food

24.31

179.8

193.7

7.73

Non-food

75.69

149.7

160.7

7.35

Consumer Price Index for new series (base: 2010=100)

CPI-NS General (all India)

100.00

113.8

124.9

9.75

Food

47.58

113.7

126.7

11.45

Non-food

52.42

113.9

123.3

8.22

Note: the figures are provisional for October 2012 in case of WPI and CPI-NS

 

Variation in the level of index and inflation in these two indices is due to difference in base year, commodity composition and weights.

 

            Inflation measured in terms of both these indices currently is above the comfort level of Government and Reserve Bank of India. Government and Reserve Bank of India have been conscious of the need to contain inflation. Measures taken in this regard are given at Anenxure-I.

 

 


 

Annexure-I

 

Measures taken to contain inflation

 

1.     Fiscal and Administrative measures

 

·         Reduced import duties to zero-for wheat, onion, pulses, crude palmolein and to 7.5% for refined and hydrogenated oils and vegetable oils.

·         Duty-free import of white and raw sugar was extended upto 30/6/2012; presently the import duty has been kept at 10%.

·         Ban on export of onion was imposed for short period of time whenever required. Exports of onion were calibrated through the mechanism of Minimum Export Prices (MEP).

·         Maintained the Central Issue Price (CIP) for rice (at Rs. 5.65/kg for BPL and Rs. 3/kg for AAY) and wheat (at Rs. 4.15/kg for BPL and Rs. 2/kg for AAY) since 2002. Effective prices for BPL families in 2012-13 are 23.4% and 22.8% of the economic cost of rice and wheat respectively.

·         Suspended futures trading in rice, urad, tur, guar gum and guar seed.

·         Banned export of edible oils (except coconut oil and forest based oil) and edible oils in blended consumer packs upto 5 kg with a capacity of 20,000 tonnes per annum and pulses (except Kabuli chana and organic pulses and lentils upto a maximum of 10,000 tonnes per annum)

·         Imposed stock limits from time to time in the case of select essential commodities such as pulses, edible oil, and edible oilseed and in the case of paddy and rice for specific seven states upto 30.11.2012.

·         To ensure adequate availability of sugar for the households covered under TPDS, the levy obligation on sugar factories was resorted to 10% for sugar season 2011-12.

·         Government allocated rice and wheat under OMSS scheme.

·         Off take of wheat and rice continued to be maintained to ensure adequate availability of food grains. Overall off-take of wheat and rice was 53.0 million tonnes in 2010-11 and 56.4 million tonnes in 2011-12. In first five months of the current fiscal year 24.0 million tonnes has already been distributed.

·         Resumed the scheme for subsidized imported pulses through PDS in a varied form with the nomenclature “Scheme for Supply of Imported Pulses at Subsidized rates to States/UTs for Distribution under PDS to BPL card holders” with a subsidy element of Rs. 20/- per kg to be paid to the designated importing agencies upto a maximum number of BPL card holders for the residual part of the current year and extended the scheme for subsidized imported edible oils w.e.f. 1.10.2012 to 30.9.2013 with subsidy of Rs. 15/- per kg for import of upto 10 lakh tonnes of edible oils for this period.

 

2.     Budgetary and other measures

 

A number of measures have been announced in Unino Budget 2012-13 to augment supply and improve storage and warehousing facilities. Government had launched a National Mission for Protein supplements in 2011-12 with allocation of Rs. 300 crore. To broaden the scope of production of fish to coastal aquaculture, apart from fresh water aquaculture, the outlay 2012-13 is being stepped up to Rs. 500 crore. Recently, Government has permitted Foreign Direct Investment (FDI) in multi-brand retail trading. This will help consumers and farmers by improving the sell and purchase facilities.

 

 

3.     Monetary measures

 

·         The Reserve Bank of India (RBI) had also taken suitable steps to contain inflation with 13 consecutive increase by 375 bps in policy rates from March 2010 to October 2011.

·         However, to increase liquidity, it reduced CRR (from 6% to 4.25%) and SLR (from 25% to 23%). With moderation in inflation, repo rate was also reduced by 50 basis points in April 2012 to bring it to 8.00 per cent.

 

                This was stated by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

 

 

 

* * * * *

 

 

DSM/RS/ka


(Release ID :90128)

Web Ratana This site is winner of Platinum Icon for 'Outstanding Web Content' Web Ratna Award'09 presented in April 2010
Site is designed and hosted by National Informatics Centre (NIC),Information is provided and updated by Press Information Bureau
"A" - Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110 001 Phone 23389338
Go Top Top

उपयोग संबंधी शर्तें स्वोत्वाधिकार नीति गोपनीयता संबंधी नीति हाइपरलिंकिंग नीति Terms of Use Copyright Policy Privacy Policy Hyperlinking Policy