sub group report pmc

8/13/2019 Sub Group Report PMC

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REPORT

OF

THE SUB-GROUP

ON

PRICE MONITORING AND MARKET INTERVENTION

August 2011

Pric M!"it!ri"g C##D$%rt&"t !' C!"su&r A''%irs

1


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1( INTRODUCTION

1(1( The sub-group on Price Monitoring and Market Intervention was carved

out to study the system of price monitoring in India specifically, the

existing system of daily price collection and measures to be taken to

improve data collection and to strengthen the data and information base of

prices of essential commodities and to review the scope for market

intervention measures The composition of the sub-group is given at

!nnexure I

2( PRICE MONITORING IN INDIA

2(1( In India, monitoring of prices are done on a regular basis both from

absolute prices and price indices "#hart-$%

C)%rt-1

&onventionally, market prices in India mostly refer to wholesale prices and2


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retail prices 'holesale prices refer to the prices at which transactions

take place at the wholesale market (etail prices are those at which

transactions take place at retail markets Thus, wholesale prices refer to

the prices for bulk transactions between whole sellers and the retailers In

other words, wholesale prices are the purchase prices paid by the

retailers !s against this, retail prices refer to the prices for smaller

transactions between retailers and consumers Thus, retail prices are the

sale prices for retailers and purchase prices for the consumers

&)!s is evident from chart-$, a number of *overnment +epartments and

agencies are involved in price collection and dissemination exercise

owever, the purpose and scope of each agency are different from the

others

&)$ Price Monitoring #ell of the +epartment of #onsumer !ffairs collects and

disseminates wholesale and retail prices of selected essential food items

from the view point of protecting consumers interests to ensure that these

items remain available to the consumers and also at affordable prices

2.3.2 +irectorate of Marketing . Inspection under the +epartment of !griculture

. #ooperation provides an online platform "wwwagmarnetnicin % for

collection and dissemination of wholesale prices of agricultural

commodities on a daily basis with the purpose of making the agricultural

marketing more efficient by disseminating the ruling market price to the

farmers as well as other market operators The prices in their data

feeding network are uploaded by the !gricultural Produce Market

#ommittees "!PM#%

&)) +irectorate of /conomics . 0tatistics "+/0% under the +epartment of

!griculture . #ooperation collects wholesale and retail prices along with

production, area coverage, weather forecast etc on a weekly basis to

have better market intelligence and to have advance assessments

regarding demand-supply gap +/0 collects prices from the 0tate

3
http://www.agmarnet.nic.in/http://www.agmarnet.nic.in/http://www.agmarnet.nic.in/


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Marketing 1oards of the respective state governments

&)2 'holesale Price Index is generated and disseminated by the 3ffice of the

/conomic !dviser, +epartment of Industrial Policy and Promotion with the

purpose of making available a headline measure of inflation which is used

for macroeconomic policies and monetary policies

&)4 #onsumer Price Indices are generated by the 5abour 1ureau with the

purpose of providing #ost of 5iving Index #onsumer Price Indices are

constructed separately for the Industrial 'orkers "#PI-I'%, for !gricultural

5abourers "#PI-!5%, and for (ural 5abourers "#PI-(5%

&)6 #onsumer Price Indices for 7rban and for (ural areas are being

generated separately as well as combined for urban and rural by the

#entral 0tatistical 3rganisation"#03%, with the purpose of providing a

general measure of inflation encompassing all sections of the population

&2The methodologies followed for data collection by the agencies differ from

each other !lso data are released and disseminated in different formats

0cope of the prices data collected by various agencies is given in Table $

T%*# 1+ N%tur !' D%t% R$!rti"g *, Di''r"t Ag"cis

D%t% S!urc N! !'C"trs

.u!t%ti!"s

C!&&!/itisC!r/

F!r& !'/%t%

Pri!/icit, %g

3ffice of the/conomic !dviser,

+IPP

428&9uotations

6:6 'hole salePrice Index

'eekly for Primary and;uel . Poweruisite

6( STRATEG3 FOR THE T9EFTH PAN

6(1(C!"rti"g PMC i"t! Ess"ti%# C!&&!/itis M!"it!ri"g Diisi!"

4$$ The 0tanding #ommittee of this +epartment as well as the

/stimates #ommittee on K+rought Management, ;ood grains

Production and Price 0ituation recommended that the role of the

PM# should be redefined in view of the dynamic nature of the

domestic and global markets The task to set up a Kcredible data

collection and monitoring system re>uires multi-tasking at different

levels There is, therefore, an urgent need to strengthen the Price

Monitoring #ell In this context, a proposal to convert the PM# to a

full-fledged division, an /ssential #ommodities Monitoring +ivision

"/#M+%, was sent to +epartment of /xpenditure in &=$= for approval

4$& 0trengthening of PM# re>uires the followingB

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5.1.2.1. C%$%cit, *ui#/i"g !' t) :isti"g &%"$!;r uires constant updating of the knowledge base and skills of

the officials engaged in this work 3fficials of PM# will be

deployed to national as well as international training

programmes organiCed on price related subHects and to the

specialised trainings related to data analysis and econometrics

by nationaluality, reliability and

regularity of the data, PM# needs to be strengthened by thedeployment of additional manpower Two Joint +irectoruired

Personal !ssistants and !ssistants cum +ata /ntry 3perators

will also be re>uired to achieve this task Market Intervention

0chemes re>uire designated officers and staff for regular

monitoring of the domestic availability of pulses and onionsF

constant liaising with representatives of P07s


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price collection mechanism and to advise on improvement

4&& ;or improving efficiency of data collection, cent-per-cent online

system needs to be put in place ;or this appropriate financial

assistance will have to be provided to purchase computers and

wherewithals to the centers who are lacking in computer facilities

4&) Trainings, workshops and follow up meetings are re>uired to be

organised with the state civil supplies departments to ensure adoption

of a uniform methodology for collection and reporting of data across

the selected centres

4&2 3fficials involved with the price monitoring and analysis work will

have to make occasional field visits to have interaction with the state

level officials involved in the work and to visit the markets to develop

better understanding of the market dynamics on the one hand, and to

get feedback from consumers, on the other

4&4 ! computerised system will have to be developed to instantly

check and validate the reported prices

4&6 To monitor and analyse the impact of forward trading on marketprices, officials associated with PM# will have to be trained on the

subHect

6((Str"gt)"i"g !' Pric R$!rts Structur

4)$ /xternal IT experts will be engaged in improving the presentations

of the price reports

6(4(Str"gt)"i"g !' Pric A"%#,sis

42$ Su*scri*i"g t! t) Srics !' Pr!'ssi!"%# Org%"is%ti!"s - To

undertake the research work related to availability and trend of prices

of essential commodities, subscription to the services oforganisations such as Dewswire $8, !griwatch, Indiastat and


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similar services is essential ;or instance, Indiastat provides time

series data on various parameters of the Indian as well as global

economy, while Dewswire $8 and !griwatch provide valuable insights

into the national and international commodity markets

42& Hiri"g Pr!'ssi!"%#s =D!&%i" :$rts> - To handle the

challenges of commodity analysis >ualified personnel with

appropriate knowledge and skills are re>uired PM# in its present

status is not endowed with ade>uate manpower resources with

re>uired skillsThus, hiring a range of professionals like !gricultural

/conomists, 0tatisticians and /conometricians will help in analysis

and comprehension of data to provide concrete and precise inputs inpolicy formulation

42) E"g%gi"g $ri%t !rg%"is%ti!"s '!r c!"/ucti"g rs%rc)

stu/is %"/ sur,s- There are rough estimations regarding the

consumer base in India 1ut there has not been a data base on the

profile of consumers in India D003 conducts #onsumer

/xpenditure 0urvey that gives the consumption pattern but not the

structure and characteristics of consumers It is important to take upfield surveys to generate primary data regarding the consumer base

in India !lso there is complete absence of data relating to the

aggregate demand of specific essential commodities These surveys

need to be planned, designed and executed in a systematic and

professional manner( This task may be outsourced to the

professional organisations that are well versed in this field

6(6( Str"gt)"i"g M%r8t I"tr"ti!" Su$$!rt M%surs

6(6(1( E:isti"g M%surs

44$$ !s stated under para ):, PM# is involved in market

intervention activities, whereby central agencies are engaged for

carrying out the task, such as in the case of imports and disposal

of pulses, and onions etc The aim of such interventions is to

increase availability of essential commodities The obHective of

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involving #entral agencies is to take advantage of their trade

operations and incentivise them to procuring and selling

essential commodities in the domestic market within their

commercial ambit This is expected to cool market sentiments

44$& The role of the #ivil 0upplies #orporations and #ooperatives

in providing essential commodities at reasonable rates is also

crucial ! scheme for strengthening capacity of 0tate #ivil

0upplies #orporations


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farmers


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"iii% 0trengthening Price Monitoring #ells at the 0tates, and

"iv%0trengthening Dational Informatics #entre at the #entre

b To achieve the obHectives of effective market intervention it is necessary to

strengthen the D##; and D!;/+ through the creation of cold storage

infrastructure and market stabilisation fund

LLLLLLLLLLLLLLLLLLLLLL

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A"":ur-I

#3MP30ITI3D 3; T/ 071-*(37P 3D P(I#/ M3DIT3(ID* !D+

M!(/T IDT/(E/DTI3D

#onvener- 0enior /conomic !dviser, +epartment of #onsumer !ffairs

Members - Manager +irector, D##;

/conomic !dviser, +epartment of #onsumer !ffairs

(epresentative of *ovt of Tamilnadu

(epresentative of *ovt of *uHarat

(epresentative of *ovt of !ndhra Pradesh

(epresentative of *ovt 3rissa

(epresentative of *ovt of D#T of +elhi

(epresentative of #ompetition #ommission of India

(epresentative of Dational #ouncil of !pplied /conomic (esearch

(epresentative of #entral 0tatistical 3rganiCation(epresentative of Dational #ommodity /xchange "D#+/G%

(epresentative of Dational Informatics #entre "DI#%

+irector "#ooperation%, +epartment of #onsumer !ffairs

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A"":ur-II3EAR-9ISE CENTERS@

S(N!(

C"trs 'r!&;)ic) $rics ;rc!##ct/ i" 2006 S(N!(

C"trs%/// i"2007 S(N!(

C"trs %/// i"2010 S(N!(

C"tr

/#t/i" 2011

NORTH ONE

$ +/5I $ #handigarh $ I0!(

& 0IM5! & 0hrinagar & !(D!5

) 57#D3' ) Jammu ) M!D+I

2 !mritsar 2 1!TID+!

4 5udhiana 4 !DP7(

6 +ehradun 6 E!(!D!0I

: !*(!

9EST ONE

2 !M/+!1!+ : (aipur 8 J3+P7(

4 13P!5 @ 3T!

6 M7M1!I $= D!*P7(

: J!IP7( $$ ID+3(/

$& (!J3T

EAST ONE

8 P!TD! 8 (anchi $) 1!*!5P7(

@ 171!D/0'!( $2 #7TT!#

$= 35!T! $4 0!M1!5P7(

$6 0I5I*7(I

NORTH-EAST ONE

$$ *7'!!TI @ 3IM! $: IT!D!*!( $ 3IM!

$& 0I553D* $8 +IM!P7($) !IN'!5

$2 !*!(T!5!

SOUTH ONE

$4 A+/(!1!+ $@ EiHaywada

$6 1!D*53(/ &= +!('!+

$: TP7(!M &$ /(D!75!M

$8 #/DD!I && +ID+I*75

&) TI(7#I(!P!55I

1 C"trs 25 C"trs 60 C"trs 4 C"trs

# Status as on $ul %&''

25


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A"":ur-III CENTRE-9ISE DATA REPORTING S3STEM @

0DoO"#i" D%t%F/i"g 0Do

R$!rt/*, -M%i# 0Do

R$!rt/*, F%:

NORTH ONE

$ +elhi $ #handigarh $ isar

& 0himla & 0hrinagar & arnal

) Mandi ) Jammu

2 5ucknow 2 !mritsar

4 anpur 4 5udhiana

6 Earanasi 6 1hatinda

: !gra : +ehradun

9EST ONE

8 (aipur ) Jaipur 8 Jodhpur

@ !hmedabad @ ota

$= (aHkot

$$ 1hopal$& Indore

$) Mumbai

$2 Dagpur

EAST ONE

$4 Patna $= (anchi

$6 1hagalpur $$ olkata

$: 1hubaneshwar $& 0iliguri

$8 #uttack

$@ 0ambalpur

NORTH-EAST ONE

2 *uwahati $) Itanagar

4 0hillong $2 !iCwal

6 !gartala $4 +eemapur

SOUTH ONE

&= yderabad : 1anglore

&$ EiHaywada 8 +harwad

&& Thiruvanthapuram

&) #hennai

&2 +indigul

&4 Thiruchirapalli

&6 /rnakulam

# Status as on $ul %&''

26


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A"":ur IV

3%r ;is r?uir&"t !' 'u"/s '!r str"gt)"i"g Pric M!"it!ri"g C##

=i" Rs( #%8)

%( Str"gt)"i"g !' PMC %"/ Pric M!"it!ri"g Mc)%"is&

%t C"tr

Pur$!s '!r ;)ic)'u"/s %rR?uir/

2012-1 201-14 2014-16 2016-17 2017-15 Pri!/2012-15

C!"stituti!" %"/Srici"g !' %" E:$rtC!&&itt

C!"rti"g PMC i"t!ECMD

&=2= &&22 &268 &:$4 &@8: 124(64

Org%"ii"g Tr%i"i"g

Pr!gr%&&s '!r t)O''ici%#s !' PMC

&4 &6&4 &888 )=)& )$82 142(2

Su*scri*i"g t! t)Srics !'Pr!'ssi!"%#Org%"is%ti!"s

&= && &2 &6 &8 120

Hiri"g Pr!'ssi!"%#s=D!&%i" :$rts>

)= )) )6)= )@@) 2)@& 1(16

E"g%gi"g $ri%t!rg%"is%ti!"s '!rc!"/ucti"g rs%rc)stu/is %"/ sur,s

4= 4&4= 44$) 4:8@ 6=:8 257(0

T!t%# 146(4 167(1 17( 11(2 14(41 47(2

*( Str"gt)"i"g !' NIC

0trengtheningDational

Informatics #entre"DI#%

10 11 12(1 1(1 14(74 71(06

c( Str"gt)"i"g !' PMCs i" St%ts

/mploying TrainedManpower at state

$&= $48 &=$6= &2@6 )=&2 101(7

3rganiCing'orkshops

$= $$ $&$ $))$ $262 71(06

IT Infrastructureto #entres

&= &4 )$&4 )@=6 288) 174(14

T!t%# 160 14 244(6 01(5 76(5 1267(5

GRAND TOTA==%*c>

06(4 71(1 427(04 47(65 654(2 2174(12

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