The Ministry of Statistics and Programme Implementation has released Discussion Paper 2.0 on incorporating free Public Distribution System (PDS) items into the Consumer Price Index (CPI) compilation framework, as part of the ongoing base revision of the CPI. The revision aims to enhance price collection coverage, refine methodologies, explore new data sources, and leverage modern technology for price collection and index compilation.
Following the launch of the government’s free food grain distribution scheme on January 1, 2023, covering 75% of the rural and 50% of the urban population, the ministry recognized the need to accurately reflect this initiative in CPI and inflation measurements. The issue was extensively discussed with national and international experts, the Reserve Bank of India, the International Monetary Fund, other UN institutions, and government organizations. A brainstorming session held on November 20, 2024, was followed by the release of the first discussion note in December 2024.
The proposed methodology in Discussion Paper 2.0 incorporates feedback and suggestions from these interactions. The ministry has invited comments and views from experts, academicians, government bodies, state governments, financial institutions, and other stakeholders on the paper, which is available on the ministry’s website (www.mospi.gov.in) and the CPI warehouse (www.cpi.mospi.gov.in). Stakeholders are requested to submit their feedback to psd-nso2020@mospi.gov.in by October 22, 2025.