Overview

• The statistics ministry released Discussion Paper 2.0 on Oct. 4 proposing a single commodity index that blends zero or subsidised PDS prices with market prices for items like rice and wheat.
• Free items would be assigned a zero price within the index so the shift to free distribution is captured in measured inflation.
• MoSPI asked experts, government bodies, states, financial institutions and other stakeholders to submit feedback by Oct. 22.
• The method was reviewed with an IMF expert, who assessed that it would not mute or distort price changes and would reflect any future nominal prices for PDS items.
• The proposal comes as MoSPI revises the CPI base to 2024 using HCES 2023–24, with context that PMGKAY covers roughly 75% of rural residents and half of urban residents and that CPI guides RBI policy and indexation.