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Price stability is essential for sustaining the momentum of growth and ensuring proper distribution of the benefits of development. Inflation hurts the poor the most since their income is not indexed. To prices Wholesale price Index as well as consumer Price Index indicates the trend of price variations in the economy.

The price situation in the state is influenced by the price behaviour at the national level. The fluctuation in the Prices is depicted by wholesale price and consumer price indices. The Directorate of Economics & Statistics is collecting, on regular basis, the wholesale & consumer prices of essential commodities from selected centers in the State. On the basis of these prices, monthly wholesale price indices are being prepared regularly.

(1) Wholesale Price Index (WPI) 

The wholesale prices of selected agricultural, minerals, fuel, power, light & lubricants and manufactured commodities are collected on every Friday in 76 selected centers for 154 items. District Statistical Officers and Kirshi upaj Mandies, provide information on prices in respect of their commodities from corresponding market / centers. The Directorate uses these prices for compiling monthly index series of wholesale prices for Rajasthan on the basis of weights assigned to various commodities during the base year 1999-2000=100.

The weighted index is broadly classified in following 3 groups:-

i) Primary Articles,
ii) Fuel, power, light & lubricants, and
iii) Manufactured Products.

Revised Base Year (1999-2000=100)

The Office of the Economics and Statistics Department, has introduced the revised series of the Index of Wholesale Prices (base 1999-2000=100) in replacing of the earlier WPI series (Base 1952-53=100) with effect from 1st January 2005, in Rajasthan.

An Advisory Committee was constituted by the Government of Rajasthan under the chairmanship of Dr. S. S. Acharya, (Former Chairman, Commission for Agricultural Costs and Prices, Government of India) Director, Institute of Development Studies, Rajasthan, Jaipur, for revision of base year of Wholesale Prices Index in Rajasthan. The advisory committee was entrusted with the task of examining the issues relating to weighting diagram and several other aspects of the wholesale price index series. Based on the recommendations of the committee, the Government of Rajasthan has decided to replace the existing series of Index Numbers of Wholesale Prices (Base: 1952-53) with a revised series having 1999-2000 as the base year.
The revised series 1999-2000 has 154 items for which there are 384QUOTATIONS. The average number of priceQUOTATIONS per item works out to 2.49 for the revised series and will have a substantially up dated. All items having large transaction in the State?s economy have been included in the revised series to the extent possible. Thus, the revised series will have a substantially updated and representative basket of commodities as well as variety/ grades and market.

The coverage of the new series has been rationalized by incorporating important new items, dropping unimportant items and amalgamating items with those to which they are akin.

108 distinctly new items have been added in the revised series. A few items of the current series have been amalgamated because of their similarity in characteristics and for making their description more purposeful. Only eleven items from the 1952-53 series have been dropped due to their insignificant contribution in terms of their relative value of production in the economy.

A comparison of the number of items and price quotations (at the level of major groups) in the existing as well as in the revised base series is presented in Table 1.


Table 1
Comparison of the number of items and price quotations (Major Groups)

S. No.


Number of Items in series

Number of Quotations in series






All Commodities






Primary Articles






Raw Materials






Fuel, Power Light & Lubricants






Manufactured Products





All the three major groups viz:, Primary Articles; Fuel, Power, Light & Lubricants; and Manufactured Products have expanded in respect of number of items in the revised series. Within Primary Articles, the group 'Food articles', 'Non-food articles' and 'Minerals' have recorded substantial increase in the revised series.

The composition of the series has been rationalised by incorporating newly emerging and important items, deletion of un-important items, amalgamation of less important items with similar ones and splitting of certain items into a number of items

ii) Weighting Diagram

The methodology adopted in the current series has also been followed for the proposed series. The weights of the items are based on the value of transactions, which consist of (a) value of estimated marketed surplus in the case of agricultural commodities, (b) value of products for sale in the case of non-agricultural products, and (c) total value of turnover for others. Weights have been assigned onTHE BASIS OF the entire wholesale transactions in the economy. The value of transactions of non-selected commodities has been assigned to the selected items on a pro rata basis.

Within the agricultural sector, individual commodities have been assigned weights on the basis of the value of marketed surplus during the year 1999-2000. The revised series has utilised the estimated-marketed surplus ratios pertaining to the base year, a practice that was started from the present series as proposed by the Advisory Committee.

In the minerals group, the allocation of weights to individual commodities is based on the sale value of production during the year 1999-2000. In other case major groups, Manufactured Products and Fuel, Power, Light & Lubricants, the weight have been assigned on the basis of sale values, which were obtained from concerned agencies/departments for the year 1999-2000. The weights of other miscellaneous manufactured items, which are dropped, have been distributed pro-rata among other groups within the major group.

A comparative picture of the weighting diagrams of the existing and the revised series, at the level of major groups, is presented in Table 2

Table 2
Weighting Diagram of the Revised and Previous series




1999-2000 Series

1952-53 Series


All Commodities




Primary Articles




Raw Materials




Fuel, Power, Light & Lubricants




Manufactured products



It may be observed from the above table that the weight of 'Primary Articles' has significantly declined while that of 'Fuel, Power, Light & Lubricants' and 'Manufactured Products' have gone up considerably in the revised series. This situation has arisen as a consequence of the relative decline, particularly, in 'food articles' and growth in 'non-food articles' in the major group of Primary Articles. The new weighting diagram is, thus, in conformity with the structural changes that have taken place in the economy since the introduction of the current series .

(iii) Comparison BEtween Revised Series and Old Series

Monthly/Annual rates of changes in WPI have been calculated both for the revised series and the existing series. These have been shown along with the indices in Table-3

The Advisory Committee has adopted the practice of using the average of monthly indices for the year 1999-2000 (i.e., annual average) with 1952-53 bases to estimate the linking factors of the old series for comparison with the new series. It is also noted that the linking factor has been used for All Commodities.

Comparison of the new series with the old series at the All Commodities. level depicts that the new series of indices start at a higher level than the old series, which relatively has highest annual rate of change (ARC) in the year 2001-02. Usually, the ARC during the years 1999-2000 to 2002-03 shows corresponding increasing trend. On the other hand monthly rates of changes is showing mixed trend.


Comparison of New, Old series


Annual Average Index Values

Annual Rate of Change


























(iv) Linking Factor

To maintain continuity in the index series data on Wholesale Price Index, there is a need for a linking factor so that the new series may be compared with the out going one. The linking of the two series is significant on two counts. Firstly, it provides a basis for determination of cost escalation, wage settlement etc. and secondly, it generates a long duration time series information which can be used for conducting certain analytical studies on the behavior of prices.

There are generally three different methods used for linking a new series with an old one. These are (1) arithmetic conversion method, (2) ratio method and (3) regression method.

Of the above three methods, the arithmetic conversion method is the simplest and operationally, the most convenient one. The Directorate of the Economic and Statistics has been using this method to link various series. The choice of linking method is however, left to be decided by the users.

Linking factors have been used at the 'All Commodities' level. The arithmetic conversion method is the simplest one. According to this method, the linking factor is the ratio of average of monthly WPI of the old series to the average of monthly WPI for the same period (generally the base period) of the new series. This comes to 24.4491.

(v) Methodology

It is calculated on the principle of weighted arithmetic mean according to the Laspeyre's formula, which has fixed base year weights operating through the entire life span of the series.

The index should be calculated on the principle of weighted arithmetic mean. The following formula currently being used should be used in the revised series also.

I = S (Ii x Wi) / S Wi


I = Index Number of wholesale prices of a sub-group/group/major group/All commodities,

S = Represents the summation operation,

Wi = the weight assigned to the ith item/sub-group/group/ major group and

Ii = Index of the ith item/sub-group/group/major group.

Price relatives are calculated as the percentage ratios which the current prices bear to those prevailing in the base period, i.e. by dividing the current price by the base period price and multiplying the quotient by 100. The commodity index is arrived at as the simple arithmetic average of the price relatives of all the varieties included under that commodity. The indices for the sub-groups/groups/major groups/all commodities are, in turn worked out as the weighted arithmetic mean of the indices of the items/sub-group/groups/major groups falling under their respective heads.

(2) Consumer Price Index (C.P.I.)


As a part of the all India series, the CPI for industrial workers are worked out by the Labour Bureau, Shimla on the base year 2001 = 100 for Jaipur, Ajmer and Bhilwara Centres of Rajasthan. These indices are worked out on monthly basis in respect of each centre for six groups viz:

i) Food,
ii) Pan, supari, tobacco & intoxicants,
iii) Fuel & light,
iv) Housing,
v) Clothing, bedding & foot wear and
vi) Miscellaneous.

The prices are collected on weekly basis from 6 markets at Jaipur and 2 each at Ajmer and Bhilwara for items like shoes, clothing etc., where there are generally no weekly variation prices are collected on monthly basis. The field work for price collection/supervision is basically done by the staff of Directorate of Economics and Statistics.

(3) Weekly Retail Prices

Weekly retail prices of 39 essential commodities are collected from all the district headquarters through the District Statistical Officers and price review of 23 essential commodities of 7 districts (viz: Ajmer, Bikaner, Ganganagar, Jaipur, Jodhapur, Kota and Udaipur) is sent to Chief Minister office, Food civil supply & consumer affair and Agriculture departments.

Weekly retail prices of 23 items of essential commodities of Jaipur center is also send to Hon'bel Governor.

(4) Monthly Review of Price Situation

A monthly review of price situation in Rajasthan onTHE BASIS OF wholesale price index (WPI), consumer price index for industrial workers and retail prices of 33 essential commodities, has been compiled and send to the Hon'bel Governor, Chief Minister, Chief Secretary and other concerned departments of the State Government.


(5) Wholesale Prices of live stock products and livestock feed.


Weekly wholesale prices of 86 commodities of livestock Products and livestock feed are being collected regularly from all the district head quarters through District Statistical Offices and compiling on monthly basis. These prices are being used in estimation of State Income and also being sent to CSO, Govt. of India


(6) Prices of Building material, labour wages and Building construction cost index


The Directorate of Economics and Statistics has been preparing quarterly index (base year 1971=100) for residential building construction material and labour cost for the low income group houses constructed by Rajasthan Housing Board at Jaipur. However, prices of construction material and labour wages are being collected from all the District Statistical Officers and sent to N.B.O. Govt. of India.



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