Price Management
The overall availability and prices of essential commodities generally remained satisfactory during the year 2007-08 except for rice, some pulses and edible oil. The annual rate of inflation in terms of Wholesale Price Index (WPI) number recorded a higher increase of 7.5% during the year 2007-08 as compared to 6.6% in the corresponding period a year ago. The modest increase in the inflation rate in the year was mainly attributed to increase in prices of some essential commodities like cereals, pulses (arhar and masur), Milk, edible oils etc. Government has given high priority to contain the rise in prices of essential commodities at reasonable level. Prices of 14 essential commodities are being closely monitored and reviewed at high levels. Commodities which are in short supply such as edible oil and pulses are being imported to supplement the domestic availability.
During the year 2007-08, monitoring of the retail price of 14 essential commodities, viz. rice, wheat, atta, gram dal, arhar dal, sugar, milk, groundnut oil, mustard oil, vanaspati, salt, tea, potato and onion was regularly carried out by the Department of Consumer Affairs on a daily basis. The wholesale prices of these commodities is monitored on a weekly basis covering 37 centres. The High Powered Price Monitoring Board (HPPMB), the Cabinet Committee on Prices (CCP) and Committee of Secretaries (COS) reviewed the prices and availability position of essential commodities at regular intervals, based on the agenda note on 'General Prices Situation and Availability of Essential Commodities' prepared by the Price Monitoring Cell (PMC) of the Department of Consumer Affairs. The HPPMB, CCP and COS meet periodically to review the price and availability scenario of essential commodities, and direct concerned Ministries/Departments, to take appropriate and necessary remedial action.
Movements in the Wholesale Price Index (WPI) number during 2007-08 indicated that WPI of Manufactured Products with a higher weight of 63.75 per cent in the overall index basket increased by 6.9% per cent, while the index number of Fuel, Power, Light and Lubricants with a lower weight of 14.23 per cent rose by 6.8 per cent.
Source: National Portal Content Management Team, Reviewed on: 02-06-2010 
