The Ministry of Statistics and Programme implementation is conducting the base revision of the Consumer Price Index (CPI). The process includes enhancing coverage of price collection, refining existing methodologies, exploring new data sources and effective use of modern technology in the price collection and index compilation.

In view of the launch of free food grain distribution scheme by the Government of India from 1^st January 2023 covering 75% rural and 50% urban population, the issue of appropriate and realistic reflection of the same in CPI and inflation measurement has become relevant and desirable.

The issue has been deliberated in detail with the National and International experts, Reserve Bank of India, International Monetary Fund & other UN institutions and Government organisations.  A brainstorming session on the topic was also held on 20^th November, 2024 followed by the first discussion note published by MoSPI in December, 2024.

The proposed methodology in the discussion paper 2.0 is designed by MoSPI after incorporating suggestions and feedback received during above mentioned interactions. MoSPI invites views and comments from experts, academicians, government bodies, state governments, financial institutions and other stakeholders on the Discussion paper 2.0 on treatment of free PDS items in the CPI compilation framework.  The Discussion paper 2.0 is available on MoSPI’s website www.mospi.gov.in and CPI warehouse www.cpi.mospi.gov.in .  Comments and suggestions may be sent to psd-nso2020@mospi.gov.in by 22^nd October, 2025

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Samrat/Allen

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