BASE YEAR UPDATION OF CONSUMER PRICE INDEX NUMBERS FOR INDUSTRIAL WORKERS (CPI-IW) 2013-14=100
Background of CPI-IW series:
The CPI-IW series on scientific lines
was first introduced with base 1960=100 which was based on the results
of Family Living Survey conducted in 1958-59 at 50 industrially
important centres. The series was then, updated on base 1982=100 and a
revision in 1999-2000 has further updated the base on 2001=100. The
current series of CPI-IW with base year 2001=100 covers 78 industrially
important centers spread across the country.
Need for Base Updation:
The consumption pattern of the working
class population undergoes change over a period of time and therefore,
it becomes necessary that the consumption basket is updated from time to
time to account for these changes and to maintain the representative
character of the index. The need for frequent revision of base on
account of fast changing consumption pattern of the target group has
been recommended by International Labour Organisation, National
Statistical Commission, National Commission on Labour and also Technical
Advisory Committee on Statistics of Prices and Cost of Living. Also
this recommendation was strongly reiterated by the Index Review
Committee set up under the Chairmanship of Prof. Chadha which inter-alia
stated that the intervening gap between the two series should not
exceed 10 years. Labour Bureau accordingly, has proposed to revise the
base year of the existing CPI-IW series 2001=100 to a more recent base
year preferably, 2013-2014=100.
Scope and Coverage
The current series of CPI-IW with base
2001=100 was constructed on the basis of employment data in seven
sectors namely, Registered Factories, Mining, Plantations, Ports &
Docks, Public Motor Transport, Electricity Generation & Distribution
Establishments and Railways sector. The current series comprises of a
basket of about 370 items and 289 price collection markets spread across
78 centres of the country. In the existing series, the Working Class
Family Income & Expenditure Survey was conducted during 1998-99 by
the NSSO and a sample size of 41040 family budget schedules and 15960
house rent schedules (i.e. about a total of 57000 schedules) were
canvassed from 78 industrially important centres of the country. The
price collection work was done by the Labour Bureau and the main survey
work of income & expenditure data collection was conducted by NSSO.
In line with the recommendations of Index Review Committee (IRC), the
possibilities of extending the scope of the new series to two more
additional sectors i.e. Handloom and Construction sectors are being
considered. However, Labour Bureau expects an increase
in the number of centres from existing 78 centres to around 88-95
centres approximately. Consequently, the total number of family budget
enquiry schedules and house rent schedules to be canvassed would
increase to 70,000 schedules approximately.
Committees:
i) Standing Tripartite Committee
The Index Review Committee (IRC) headed
by Prof. G.K. Chadha recommended for constitution of a Standing
Tripartite Committee (STC) of all the stakeholders. Accordingly Ministry
of Labour & Employment constituted a Standing Tripartite Committee
(STC) vide order No. Y-12011/5/2010-ESA(LB), dated 12th January, 2011.
The Terms of Reference of the STC formed are as follows:
The Standing Tripartite Committee will
{i} examine the various aspects of the
base year revision of Consumer Price Index Number Series for Industrial
Workers {CPI-IW} including the selection of Centres, sample size,
sampling design, methodology for deriving the weighting diagram and
linking factor;
{ii} examine the method of price collection procedures and machinery of price collection;
{iii} examine the centre specific
weighting diagrams for all the centres, selection of base year,
compilation of base year prices, trial indices; and
{iv} consider any other relevant issue{s}/matter as may be necessary.
Secretarial assistance to the Standing
Tripartite Committee will be provided by the Labour Bureau, Ministry of
Labour. The Committee may also enlist the assistance of subject matter
experts within and/or outside the Government and may co-opt members
according to necessity.
Source : http://labourbureau.nic.in/
August 31, 2013
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