The Ministry of Statistics and Programme Implementation (MoSPI) has released Discussion Paper 2.0 on "The Treatment of Free PDS Items in Consumer Price Index (CPI) Compilation," posted on October 4, 2025. This paper addresses the base revision of the CPI, which includes enhanced price collection coverage, refined methodologies, new data sources, and the use of modern technology.
The paper considers the Government of India's free food grain distribution scheme, launched on January 1, 2023, covering 75% of the rural and 50% of the urban population. The MoSPI invites views and comments from experts, academicians, government bodies, state governments, financial institutions, and other stakeholders.
The Discussion Paper 2.0 is available on MoSPI's website at www.mospi.gov.in and the CPI warehouse at www.cpi.mospi.gov.in. Comments and suggestions can be sent to psd-nso2020@mospi.gov.in by October 22nd, 2025. This release has ID number 2174740. A brainstorming session on the topic was held on November 20th, 2024 followed by the first discussion note published by MOSPI in December, 2024.
Key Entities Referenced
Ministry of Statistics & Programme Implementation (MoSPI): The department responsible for conducting the base revision of the Consumer Price Index (CPI) and related discussion paper.
Consumer Price Index (CPI): The index being revised, focusing on the treatment of free PDS items.
Discussion paper 2.0 on "The Treatment of Free PDS Items in Consumer Price Index (CPI) Compilation": The discussion paper that proposes a methodology for including free PDS items in the CPI compilation.
Free food grain distribution scheme: A scheme covering a significant portion of the rural and urban population, influencing the need for accurate CPI measurement.
Ministry of Statistics & Programme Implementation
Release of Discussion paper 2.0 on “The Treatment
of Free PDS Items in Consumer Price Index (CPI)
Compilation”
Posted On: 04 OCT 2025 2:09PM by PIB Delhi
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.
st
In view of the launch of free food grain distribution scheme by the Government of India from 1 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
th
session on the topic was also held on 20 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
nd
www.cpi.mospi.gov.in . Comments and suggestions may be sent to psd-nso2020@mospi.gov.in by 22
October, 2025
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Samrat/Allen
(Release ID: 2174740)