Index Numbers of Wholesale Price in India (Base: 2011-12=100) Review for the month of April, 2017



Index Numbers of Wholesale Price in India (Base: 2011-12=100)
Review for the month of April, 2017 

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of April, 2017 declined by 0.2 percent to 113.2 (provisional) from 113.4 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.85% (provisional) for the month of April,2017 (over April,2016) as compared to 5.29% (provisional) for the previous month and -1.09% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was -0.18% compared to a build up rate of 1.21% in the corresponding period of the previous year

Inflation for important commodities / commodity groups is indicated in Annex-1 and Annex-II.
The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 22.62%)

The index for this major group rose by 0.4 percent to 128.4 (provisional) from 127.9 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group rose by 0.6 percent to 139.4 (provisional) from 138.5 (provisional) for the previous month due to higher price of beef and buffalo meat (11%), tea (11%), peas/chawali (8%), moong (5%), fruits & vegetables, poultry chicken and pork (2% each) and masur,  arhar,  bajra,  gram and milk (1% each).  However, the price of barley (8%), betel leaves (7%), egg (6%), ragi (2%) and wheat, urad and condiments & spices (1% each) declined.

The index for ‘Non-Food Articles’ group declined by 0.3 percent to 121.2 (provisional) from 121.6 (provisional) for the previous month due to lower price of raw jute (10%), rape & mustard seed (4%), raw rubber and floriculture (3% each), raw cotton and sunflower (2% each)  and cotton seed (1%). However, the prices of castor seed (9%), copra (coconut) (5%), guar seed (4%), raw silk, groundnut seed and soyabean (2% each) and mesta, safflower (Kardi Seed), fodder and gingelly seed (1% each) moved up.

FUEL & POWER (Weight 13.15%)

The index for this major group declined by 1.9 percent to 92.8 (provisional) from 94.6 (provisional) for the previous month due to lower price of naphtha and furnace oil (7% each), aviation turbine fuel (ATF) (5%),  petrol (4%), high speed diesel (HSD) and bitumen (3% each), kerosene (2%) and LPG (1%).  However, the prices of coking coal (1%) and petroleum coke (3%) moved up.

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group remained unchanged at its previous month level of 112.1 (provisional). The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Manufacture of Food Products’ group declined by 0.1 percent to 127.3 (provisional) from 127.4 (provisional) for the previous month due to lower prices of molasses, soyabean oil, spices (including mixed spices), maida, gram powder (besan) and sunflower oil (1% each).   However, the price of salt (2%) and mustard oil, powder milk, basmati rice, gur, bagasse and castor oil (1% each) moved up.

The index for ‘Manufacture of Beverages’ group rose by 0.1 percent to 117.2 (provisional) from 117.1 (provisional) for the previous month due to marginally increase price of bottled mineral water.



The index for ‘Manufacture of Tobacco Products’ group declined by 0.1 percent to 145.7 (provisional) from 145.9 (provisional) for the previous month due to lower price of other tobacco products (3%).  However, the price of biri and cigarette (2% each) moved up.

The index for ‘Manufacture of Textiles’ group rose by 0.2 percent to 113.3 (provisional) from 113.1 (provisional) for the previous month due to higher price of fabric, polyethylene, bed linen/bed spread and cotton dyed/printed textile (1% each).  However, the prices of woolen woven cloth, terry towel and carpets and other floor coverings of textiles (1% each) declined.

The index for ‘Manufacture of Wearing Apparel’ group rose by 0.6 percent to 134.1 (provisional) from 133.3 (provisional) for the previous month due to higher price of manufacture of wearing apparel (woven), except fur apparel (1%).

The index for ‘Manufacture of Leather and Related Products’ group rose by 0.2 percent to 120.2 (provisional) from 120.0 (provisional) for the previous month due to higher price of waterproof footwear and canvas shoes (2% each) and gloves of leather (1%).

The index for ‘Manufacture of Wood and Products of Wood and Cork’ group rose by 0.3 percent to 131.3 (provisional) from 130.9 (provisional) for the previous month due to higher price of wooden panel, lamination wooden sheets/veneer sheets (1% each).

The index for ‘Printing and Reproduction of Recorded Media’ group declined by 0.4 percent to 142.7 (provisional) from 143.3 (provisional) for the previous month due to lower price of hologram (3D) (17%) and printed form & schedule, printed labels/posters/calendars and newspaper (1% each).

The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.2 percent to 111.4 (provisional) from 111.6 (provisional) for the previous month due to lower price of poly propylene (PP) (4%), mono ethyl glycol and oleoresin (3% each), insecticide and pesticide and phthalic anhydride (2% each) and polyester film (metalized), explosive, safety matches (match box), poly vinyl chloride (PVC), liquid air & other gaseous products, sodium silicate, plasticizer, ethylene oxide, organic solvent and catalysts (1% each).  However, the price of XLPE Compound, adhesive tape (non-medicinal) and hydrogen peroxide (2% each) and ammonia gas, ammonium phosphate, camphor, sulphuric acid, powder coating material, acrylic fibre, agro chemical formulation, paint and shampoo (1% each) moved up.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 0.1 percent to 121 (provisional) from 120.9 (provisional) for the previous month due to higher price of ayurvedic medicaments and digestive enzymes and antacids (1% each),  However, the price of Antipyretic, analgesic, anti-inflammatory formulations(1%) declined.

The index for ‘Manufacture of other Non-Metallic Mineral Products’ group rose by 0.1 percent to 109.3 (provisional) from 109.2 (provisional) for the previous month due to higher price of porcelain crockery (1%).  However, the price of marble slab (2%) declined.

The index for ‘Manufacture of Basic Metals’ group rose by 0.1 percent to 94.9 (provisional) from 94.8 (provisional) for the previous month due to higher price of aluminium powder (2%) and MS bright bars,  stainless steel bars & rods,  including flats, aluminium castings, lead ingots, bars, blocks plates and MS castings (1% each). However, the price of brass metal/sheet/coils, copper metal/copper rings and copper shapes-bars/rods/plates/strips (1% each) declined.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group declined by 0.6 percent to 106.9 (provisional) from 107.5 (provisional) for the previous month due to lower of electrical stamping- laminated or otherwise (8%), stainless steel razor (2%) and steel drums and barrels, steel container and steel door         (1% each).  However, the price of jigs & fixture (1%) moved up.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group rose by 0.1 percent to 108.5 (provisional) from 108.4 (provisional) for the previous month due to higher price of microscope (5%) and watch (1%).

The index for ‘Manufacture of Electrical Equipment’ group rose by 0.1 percent to 108.5 (provisional) from 108.4 (provisional) for the previous month due to higher price of PVC insulated cable and light fitting accessories (2% each) and aluminium/alloy conductor,  air coolers,  fluorescent tube, electrical relay/conductor, generator parts, batteries and electric mixers/grinders/food processors (1% each), However, the price of microwave oven and connector/plug/socket/holder-electric (3% each), rubber insulated cables (2%) and electric filament type lamps, ACSR conductors and insulating & flexible wire (1% each) declined.

The index for ‘Manufacture of Machinery and Equipment’ group rose by 0.1 percent to 108.4 (provisional) from 108.3 (provisional) for the previous month due to higher price of pressure vessel and tank for fermentation & other food processing (3%) and evaporator, soil preparation & cultivation machinery (other than tractors), sugar machinery, chillers and pharmaceutical machinery (1% each).  However, the price of solar power system (solar panel & attachable equipment) (3%) and filtration equipment, hydraulic pump and threshers (1% each) declined.

The index for ‘Manufacture of Other Transport Equipment’ group declined by 1.6 percent to 108.1 (provisional) from 109.9 (provisional) for the previous month due to lower price of motor cycles (3%).

The index for ‘Manufacture of Furniture’ group rose by 0.2 percent to 117.3 (provisional) from 117.1 (provisional) for the previous month due to marginally increase in the price of plastic fixtures.

WPI FOOD INDEX (Weight 24.38%)

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 5.50% in March, 2017 to 2.90% in April, 2017.

FINAL INDEX FOR THE MONTH OF FEBRUARY, 2017 (BASE YEAR: 2004-05=100)

For the month of February, 2017, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) and annual rate of inflation remained unchanged at its provisional level of 185.5 and 6.55 percent respectively as reported on 14.02.2017.

Next date of press release: 14/06/2017 for the month of May, 2017
Office of Economic Adviser, Ministry of Commerce & Industry, New Delhi,
This press release is available at our home page http://eaindustry.nic.in

Annexure-I
Wholesale Price Index and Rates of Inflation (Base Year: 2011-12=100)





Month of April, 2017
Commodities/Major Groups/Groups/Sub-Groups
Weight
WPI Apr- 2017
Latest month over month
Build up from March
Year on year
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
ALL COMMODITIES
100.00
113.2
1.21
-0.18
1.21
-0.18
-1.09
3.85
PRIMARY ARTICLES
22.62
128.4
2.52
0.39
2.52
0.39
3.79
1.82
Food Articles
15.26
139.4
3.30
0.65
3.30
0.65
5.43
1.16
Cereals
2.82
144.5
0.22
-0.48
0.22
-0.48
5.21
6.88
Paddy
1.43
147.6
0.81
-0.07
0.81
-0.07
2.79
8.29
Wheat
1.03
141.0
-0.89
-1.33
-0.89
-1.33
6.24
6.09
Pulses
0.64
155.8
8.02
1.17
8.02
1.17
34.33
-13.64
Vegetables
1.87
124.3
13.28
4.98
13.28
4.98
4.33
-7.79
Potato
0.28
99.0
25.90
8.79
25.90
8.79
66.87
-40.97
Onion
0.16
108.1
-7.28
-2.26
-7.28
-2.26
-28.11
-12.47
Fruits
1.60
138.8
5.56
-0.36
5.56
-0.36
2.66
0.07
Milk
4.44
137.4
0.15
0.66
0.15
0.66
1.70
4.17
Eggs, Meat & Fish
2.40
141.1
0.89
0.64
0.89
0.64
5.01
3.52
Non-Food Articles
4.12
121.2
3.41
-0.33
3.41
-0.33
8.20
-0.16
Fibres
0.84
121.8
3.08
-2.48
3.08
-2.48
6.14
17.45
Oil Seeds
1.12
129.9
8.23
0.93
8.23
0.93
9.31
-8.52
Minerals
0.83
112.7
-9.78
0.00
-9.78
0.00
-2.61
8.05
FUEL & POWER
13.15
92.8
2.35
-1.90
2.35
-1.90
-14.24
18.52
LPG
0.64
92.3
-4.15
-1.39
-4.15
-1.39
-17.61
37.97
Petrol
1.60
78.9
9.41
-4.13
9.41
-4.13
-20.00
25.64
HSD
3.10
82.1
7.65
-3.30
7.65
-3.30
-29.05
38.92
MANUFACTURED PRODUCTS
64.23
112.1
0.37
0.00
0.37
0.00
-0.82
2.66
Manufacture of Food Products
9.12
127.3
2.48
-0.08
2.48
-0.08
6.01
6.08
Manufacture of Vegetable And Animal Oils and Fats
2.64
108.1
3.31
-0.28
3.31
-0.28
4.67
4.85
Sugar
1.06
130.2
7.18
-0.15
7.18
-0.15
18.92
13.22
Manufacture of Tobacco Products
0.51
145.7
4.39
-0.14
4.39
-0.14
7.86
2.10
Manufacture of Textiles
4.88
113.3
0.74
0.18
0.74
0.18
0.09
3.47
Manufacture of Wearing Apparel
0.81
134.1
0.16
0.60
0.16
0.60
-1.55
5.59
Manufacture of Leather and Related Products
0.54
120.2
0.24
0.17
0.24
0.17
4.48
-2.83
Manufacture of Wood And of Products of Wood and Cork
0.77
131.3
-0.31
0.31
-0.31
0.31
3.59
1.16
Manufacture of Paper and Paper Products
1.11
115.6
-0.44
0.00
-0.44
0.00
0.18
2.94
Manufacture of Chemicals and Chemical Products
6.47
111.4
0.54
-0.18
0.54
-0.18
-2.11
-0.09
Manufacture of Rubber and Plastics Products
2.30
108.7
1.32
0.00
1.32
0.00
-3.33
1.21
Manufacture of other Non-Metallic Mineral Products
3.20
109.3
-0.55
0.09
-0.55
0.09
-1.09
0.09
Manufacture of Cement, Lime and Plaster
1.64
109.5
0.09
0.18
0.09
0.18
-1.27
0.55
Manufacture of Basic Metals
9.65
94.9
0.78
0.11
0.78
0.11
-9.38
5.56
Mild Steel – Semi Finished Steel
1.27
90.0
-0.76
0.00
-0.76
0.00
-8.43
-1.32
Manufacture of Fabricated Metal Products, Except Machinery and Equipment
3.15
106.9
-1.33
-0.56
-1.33
-0.56
-2.54
3.09
Manufacture of other Transport Equipment
1.65
108.1
-1.05
-1.64
-1.05
-1.64
1.46
3.84

Annexure-II
Trend of Rate of Inflation for some important items during last six months


Weight (%)
Rate of Inflation for the last six months



Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Nov-16

ALL COMMODITIES
100.00
3.85
5.29
5.51
4.26
2.10
1.82

PRIMARY ARTICLES
22.62
1.82
3.98
4.01
1.93
0.08
1.34

Food Articles
15.26
1.16
3.82
2.55
0.29
0.07
2.45

Cereals
2.82
6.88
7.64
9.05
8.45
9.89
9.89

Paddy
1.43
8.29
9.25
8.20
5.89
6.50
6.93

Wheat
1.03
6.09
6.56
11.33
12.83
15.47
13.86

Pulses
0.64
-13.64
-7.78
-2.84
4.22
14.77
18.97

Vegetables
1.87
-7.79
-0.50
-8.00
-23.49
-26.88
-17.31

Potato
0.28
-40.97
-31.68
-24.14
-16.67
-6.34
32.59

Onion
0.16
-12.47
-16.97
-20.98
-36.08
-41.67
-55.32

Fruits
1.60
0.07
6.01
3.60
1.87
0.63
5.51

Milk
4.44
4.17
3.64
3.12
2.97
3.53
3.38

Eggs, Meat & Fish
2.40
3.52
3.77
0.52
-0.81
-2.73
0.85

Non-Food Articles
4.12
-0.16
3.58
4.65
0.74
-2.29
-2.81

Fibres
0.84
17.45
24.16
21.42
18.23
12.84
16.01

Oil Seeds
1.12
-8.52
-1.91
-1.53
-3.91
-6.54
-9.80

Minerals
0.83
8.05
-2.51
11.03
14.47
-5.09
11.02

FUEL & POWER
13.15
18.52
23.66
25.17
16.67
4.25
2.11

LPG
0.64
37.97
34.10
11.63
-10.39
-4.42
-3.90

Petrol
1.60
25.64
43.38
41.02
29.06
10.61
3.94

HSD
3.10
38.92
54.64
68.99
46.06
6.92
3.10

MANUFACTURED PRODUCTS
64.23
2.66
3.03
3.23
3.33
2.49
2.02

Manufacture of Food Products
9.12
6.08
8.80
10.25
10.73
10.66
11.18

Manufacture of Vegetable And Animal Oils and Fats
2.64
4.85
8.62
12.13
14.08
11.89
9.42

Sugar
1.06
13.22
21.53
24.43
25.47
27.51
32.98

Manufacture of Tobacco Products
0.51
2.10
6.73
5.06
8.75
6.49
8.31

Manufacture of Textiles
4.88
3.47
4.05
2.94
3.34
2.12
2.21

Manufacture of Wearing Apparel
0.81
5.59
5.13
3.20
4.03
3.27
1.24

Manufacture of Leather and Related Products
0.54
-2.83
-2.76
-2.03
-1.71
-1.87
0.99

Manufacture of Wood And of Products of Wood and Cork
0.77
1.16
0.54
0.93
0.62
0.15
-1.38

Manufacture of Paper and Paper Products
1.11
2.94
2.48
2.14
1.24
1.15
1.68

Manufacture of Chemicals and Chemical Products
6.47
-0.09
0.63
0.63
-0.09
-0.81
-1.25

Manufacture of Rubber and Plastics Products
2.30
1.21
2.55
3.32
2.75
1.41
0.19

Manufacture of other Non-Metallic Mineral Products
3.20
0.09
-0.55
-0.27
-0.82
-1.98
-1.43

Manufacture of Cement, Lime and Plaster
1.64
0.55
0.46
1.11
0.64
-0.64
-0.72

Manufacture of Basic Metals
9.65
5.56
6.28
7.21
8.07
6.55
3.03

Mild Steel – Semi Finished Steel
1.27
-1.32
-2.07
-1.44
-0.88
-0.67
-0.11

Manufacture of Fabricated Metal Products, Except Machinery and Equipment
3.15
3.09
2.28
2.28
1.71
0.19
-1.89

Manufacture of other Transport Equipment
1.65
3.84
4.47
3.20
3.27
3.21
2.64
Revision of base year of All-India Wholesale Price Index (WPI) from 2004-05 to 2011-12. 

                The  Government  periodically  reviews and  revises the  base year  of  the macroeconomic indicators as a regular exercise to capture structural changes in the economy and improve the quality, coverage and representativeness of the indices.    In  this direction, the base year  of All-India WPI has been revised  from  2004-05 to  2011-12 by the  Office of  Economic  Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry to align it with the base year of other macroeconomic indicators  like  the Gross  Domestic Product (GDP)  and Index of Industrial Production (IIP).
                The Wholesale Price Index (WPI) series in India has undergone six revisions in 1952-53, 1961-62, 1970-71, 1981-82, 1993-94 and 2004-05 so far. The current series is the seventh revision. The revision entails shifting the base year to 2011-12 from 2004-05, changing the basket of commodities and assigning new weights to the commodities. It has generally been the practice to undertake the revisions on the advice of a Working Group constituted each time.  For the new series with base 2011-12=100, a Working Group was  constituted  on  19th  March  2012    chaired by  Late  Dr.  Saumitra Chaudhuri, Member, erstwhile Planning Commission and comprised most stakeholders. The  composition and  terms  of  reference of  the  Working Group is at Annex 1.
Key Highlights
                In the revised series, WPI will continue to constitute three Major Groups namely  Primary  Articles, Fuel  &  Power  and  Manufactured Products. Highlights  of  the  changes introduced in the  new series are summarized below:

•        Updated  item  basket and  weighting structure conforming to  the structure of economy in 2011-12.
•        Increase in number of items from 676 to 697.  In all 199 new items have been added and 146 old items have been dropped.
•         The new series is  more representative with increase in number of quotations from 5482 to 8331, an increase by 2849 quotations (52%).

New Features
•        In the new series of WPI, prices used for compilation do not include indirect taxes in  order  to  remove  impact  of  fiscal policy.  This  is  in consonance  with  international practices and  will   make  the  new  WPI conceptually closer to ‘Producer Price Index’.
•        A new “WPI Food Index” will be compiled to capture the rate of inflation in food items.
•        Seasonality of fruits and vegetables has been updated to account for more months as these are now available for longer duration.
•        Item level aggregates for new WPI are compiled  using Geometric Mean (GM) following international best practice and as is currently used for compilation of All India CPI.
•        A high level Technical Review Committee has been set up for the first time to carry out dynamic review process in order to keep pace with the changing structure of the economy.
New Weighting Structure
          The major changes in weights, number of items and quotations between
WPI 2004-05 and WPI 2011-12 are given in the table below:


Major Group

Weights

No. of Items

No. of
Quotations

2004-05
2011-12
2004-05
2011-12
2004-05
2011-12
ALL COMMODITIES
100.00
100.00
676
697
5482
8331
PRIMARY ARTICLES
20.12
22.62
102
117
579
983
FUEL & POWER
14.91
13.15
19
16
72
442
MANUFACTUREDPRODUCTS

64.97

64.23

555

564

4831

6906

The index basket of the new series has a total of 697 items including 117 items for Primary Articles, 16 items for Fuel & Power and 564 items for Manufactured Products.
Primary Articles
          In the Primary Articles, new vegetables and fruits such as Radish, Carrot, Cucumber, Bitter Gourd, Mosambi, Pomegranate, Jack Fruit, Pear etc have been added. In  the  mineral  group items like  Copper Concentrate, Lead Concentrate and Garnet have been added whereas Copper Ore, Gypsum, Kaolin, Dolomite, Magnesite have been deleted. Natural Gas has been added as a new item.
Fuel and Power
          In the Fuel and Power Major Group, the index for non-coking  coal will also be available at a disaggregated  level based on Gross Calorific Value ( GCV) to cater to the requirements of diverse user groups:
•        Non-Coking Coal G1 to G6 [GCV > 5500 Kcal/kg.]
•        Non-Coking Coal G7 to G14 [GCV 3100 Kcal/kg to 5500 Kcal/kg]
•        Non-Coking Coal G15 to G17 [GCV < 3100 Kcal/kg.] The item coke has been dropped.
          The index for electricity in the new series will be compiled as a single item in comparison  to  the  separate  indices  according  to  usage in  agriculture, industry, domestic, commercial, and railways in 2004-05 series. In the new series, monthly  average rate of  sale  of  power of  49 selected generating stations covering Hydro and Thermal sectors is being used to compile the index for electricity.

In the Mineral oil sub-group, Light Diesel Oil has been deleted in view of its decreasing importance while Petroleum coke has been added as a new item owing to its growing importance. There have been some changes in weights of the retained mineral fuels. The number of quotations has been increased significantly to give wider geographical coverage.

Manufactured Products
          A major review of manufactured products has been carried out. Accordingly, the number of 2 digit groups has been increased from 12 to 22 in the new series in keeping with National Industrial Classification (NIC) 2008. Around
173 new items like Conveyer Belt, Rubber Tread, Steel Cables, Tissue Paper, Wooden Splint, XLPE Compound have been added while 135 items like Khandsari, Papad, Video CD-Players, etc., have been dropped.
WPI Food Index
          A new “Food  Index” is being  compiled combining  the  “Food  Articles” under  “Primary  Articles” and  “Food  Products”  under  “Manufactured Products”. Together with the  Consumer Food  Price Index  released by Central Statistics Office, this would help monitor the price situation of food items better.
Technical Review Committee
          In order to address important technical issues such as substitution of source of data, change in specification of products and other data/methodological issues which require continuous review on a dynamic basis so that the new WPI  series remains  relevant till the  life  of  the  series, an  institutional mechanism has been established for the first time for facilitating seamless substitution of dormant source, dynamic revision of item list of products and the panel of factories through Technical Review Committee (TRC) chaired by Secretary, Department of Industrial Policy & Promotion. This committee will meet at least once a year for inter-alia recommending methodology for improving the coverage and quality of WPI like identifying  new items that need to be included in the item basket and removing those that have lost its relevance or are no longer being produced. The composition of the TRC is at Annex 2.
Index numbers and Inflation rate
          Based on the monthly price data provided by the source agencies the month- wise indices and inflation rates have been worked out. The monthly indices for the new series with base 2011-12 from April 2012 through March 2017 at

the  Major  Group  level  are provided at  Statement  I.  The  month-wise comparative inflation rates at the Major Group level for the WPI series with base 2011-12 vis-à-vis 2004-05 are provided at Statement II. The annual average inflation  rates at the Major  Group  level for both  the series are provided at Statement III.
Linking Factor
            In view of the conceptual and methodological difference between the  2004-05 and 2011-12 series, the estimate of linking factor will vary depending  on the type of method used. Therefore, users are free to choose any method as may be considered appropriate by them. However, as in the past, in order to maintain  continuity in the time series data on wholesale price index, the linking factor using the arithmetic conversion method for All Commodities and the three major groups of WPI are given in the Table below.


WPI (Base2004-05) 
 for 2011-12
Linking Factor
All Commodities
156.1
1.561
Primary articles
200.3
2.003
Fuel & Power
169.0
1.690
Manufactured Products
139.5
1.395

Major conceptual differences between WPI (2004-05) with WPI (2011-12)
      Users of the new WPI series (base 2011-12) while comparing with the old series may take note of the following conceptual differences:
a)  The item basket has been revised with inclusion of new items and exclusion of old ones. Basket of commodities has been selected afresh  in  order  to  capture  the  structural  changes that  have occurred in the economy. As such, there may not be one-to-one match for all the commodities in the two series.
b) The number of 2 digit groups in Manufactured products has been increased from 12 to 22 in keeping with NIC- 2008.
c)  There has been  an  increase  in  number  of  source agencies  in general across all Major  Groups.   Dormant/closed sources have been removed.

d) Item level prices do not include indirect taxes. Item level indices are compiled using geometric mean (GM) whereas in the 2004-05 series arithmetic mean (AM) was used.
e)  The electricity sector is now a single item group that includes data relating to average rate of sale of power by generating stations to distributors. In contrast, in WPI (Base 2004-05) retail level tariffs applicable to  different   sectors  such  as  agriculture, industry, domestic, commercial and railways were used for compilation of WPI for electricity.
NOTE:
i.    This press information is also available at the website of Office of
Economic Adviser at http://eaindustry.nic.in/.
ii.      Press Release of the final index for February 2017 with base 2004-05 and provisional  index  for  April  2017 (base 2011-12=100) will  be available at the website of Office of Economic Adviser at http://eaindustry.nic.in/.
iii.      Monthly index numbers based on new WPI series from April 2012 onwards are available at the website of Office of Economic Adviser at http://eaindustry.nic.in/.

Annex 1
The Terms of Reference of the Working Group for revision of WPI (Base 2004-05)
1.         To select  the most appropriate  Base Year for the preparation of a new official series of Index Numbers of Wholesale Price (WPI), Producers Price Index (PPI) and Business Service Price Index (BSPI) in India.
2.         To review commodity basket of the current series of WPI, PPI and BSPI and suggest additions/  deletions of commodities in the light of structural changes in the economy witnessed since 2004-05.
3.         To evolve a suitable system for allocation weight to the various commodities to be included in the WPI/ PPI/BSPI basket.
4.         To decide the computational methodology to be adopted for Monthly WPI/ PPI.
5.         To suggest methods for ensuring smooth flow of data and also to look into the possibility of having a single agency for collecting data for Wholesale Price Index (WPI) and Index of Industrial Production (IIP).
6.         To suggest any other improvements as may be necessary for enhancing the reliability of the official series of WPI/PPI/BSPI.

Annex 2
Composition of the Technical Review Committee

1.
Secretary, D/o Industrial Policy and Promotion (DIPP)
Chairman
2.
Secretary, M/o Statistics and Programme Implementation
Member
3.
Chief Economic Adviser, Ministry of Finance
Member
4.
Principal Economic Adviser, DIPP
Member
5.
Economic Adviser, DIPP
Member Secretary

I.     Terms of Reference of the TRC
i.      Reviewing periodically the list of products in the item basket of WPI and suggesting methodology  for inclusion of new important items in and exclusion of  outdated  items from  the  existing basket as  and  when warranted.
ii.      Reviewing periodically the panel of factories for compilation of WPI and suggest methodology for including new representative units that emerged after the roll out of the series in the existing panel, along with suggesting adjustment of the back series.
iii.      The  Committee will  also  consider   cases of  closed units  during the currency of the base year and recommend the methodology for replacing such units by new ones.
iv.      Reviewing periodically   the  items  in   the  item  basket  that  exhibit extraordinarily high increase/ decline in index during the currency of a fixed base year and propose normalization methodology.
v.      Suggest methodology  for  adjusting prices  of  items  with  frequently changing specification.
vi.      Recommending  appropriate  methodological  intervention  to  improve coverage, quality and timeliness of the WPI
vii.    The TRC with meet at least once a year.


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