CHAPTER -XVII
Prices and Cost of Living

PRICE SITUATION:

17.1.0 There is a strong relationship between the stability in price level and the development of the economy of a State. This is obvious due to the fact that changes in general price level has a direct bearing on the living conditions of the people particularly on the poorer sections of the society. So far as the price situation in the State is concerned the same found to have remained more or less steady during the year 2002-2003. The movement of price level in Assam as evident from the trend in different price indices as well as from retail price movement is briefly analysed in the paragraphs that follows.

RETAIL PRICES OF ESSENTIAL COMODITIES:

17.1.1 It has been observed during the first few months of the year 2002 & 2003 prices of a number of essential commodities have recorded different variations in their prices. During this period the prices of commodities like Rice, Atta, Dal, Onion, Salt etc. have shown a more or less moderate upward trend while in respect of the prices of Mustard Oil it has continued to rise sharply as compared to the others. On the other hand, prices of commodities like Potato, Sugar, Kerosene etc. have shown some fall of prices and some others have registered varying fluctuations in their prices. Table – 17.1 shows the percentage variation of Average Retail Prices of certain commodities in Urban Areas during 2002 and 2003.

TABLE – 17.1
PERCENTAGE VARIATION OF AVERAGE RETAIL PRICES OF CERTAIN COMMODITIES IN URBAN AREAS OF ASSAM
(In Rupees)

WHOLESALE PRICE INDEX NUMBER FOR AGRICULTURAL COMMODITIES:

17.1.2 The Wholesale Price Index Number for the State has been worked out by taking into account the Agricultural Commodities only. The annual average of Wholesale Price Index of Agricultural Commodities in Assam (Base 1993-94 = 100) stood at 161 in 2002-2003 as against 163 in 2001-2002 and 162 in 2000-2001. The Index thus displayed a marginal decrease of 1.22 per cent in 2002-2003 over 2001-2002. The Table at 17.2 shows the movement of Wholesale Price Index of Agricultural Commodities in Assam for last few years.

TABLE – 17.2
INDEX NUMBER OF WHOLESALE PRICES OF AGRICULTURAL COMMODITIES IN ASSAM (BASE 1993-94 = 100)

CONSUMER PRICE INDEX NUMBER FOR WORKING CLAS POPULATION:

17.1.3 The Average Consumer Price Index Number for Working Class Population (Base 1982=100) for the State is arrived at by taking into account the weighted average of the Indices of the three Centres viz., Guwahati, Silchar, and Tinsukia. The annual average of Consumer Price Index for Working Class Population (Base 1982=100) for the State displayed a price rise of 2.16 per cent in 2002 over 2001 as against 0.73 per cent increase recorded in 2001 over 2000. The Centre wise price rise is comparatively higher in Tinsukia (3.64 per cent) followed by Guwahati (1.91 per cent) and Silchar witnessed very nominal rise of prices (0.54 per cent). The month wise average Price Indices from January to June 2003 shows a rise of prices by 2.86 per cent over the corresponding period of 2002.

CONSUMER PRICE INDEX NUMBER FOR INDUSTRIAL WORKER:

17.1.4 The Labour Bureau of the Government of India has been compiling the all India Consumer Price Index Number for Industrial workers for 70 industrially developed centres spread out all over the country. This series of Index (Base 1982=100) has covered five Centres of Assam viz. Guwahati (Kamrup), Doomdooms (Tinsukia), Labac (Cachar), Morioni (Jorhat) and Rangapara (Sonitpur). In addition to above, the Directorate of Economics and Statistics is also compiling C.P.I for Industrial Workers for Digboi Centre with Base 1960=100. During the year 2002 the annual average of C.P.I. for Industrial Workers for Assam has shown a rise of 1.20 per cent over 2001 as against 4.15 per cent rise at all India level. The C.P.I. for Industrial Worker increased from the point of 418 in January 2003 to 428 in June 2003, the increase being 2.39 per cent over the period. The rate of increase of the Index in different Centres in Assam during the last six months i.e. from January, 2003 to June, 2003 were found to be 3.78 per cent at Doomdooma, 2..88 per cent at Morioni, 2.55 per cent at Digboi, 2.49 per cent at Guwahati, 1.73 per cent at Rangapara and 1.34 per cent at Labac Centre.

CONSUMER PRICE INDEX NUMBER FOR RURAL POPULATION:

17.1.5 The Consumer Price Index for Rural Population in Assam (Plain Districts) with base 1944=100 are compiled by the Directorate of Economics and Statistics, Assam. The average Consumer Price Index for Rural Population during the period January to June 2003 found to have moved up marginally by 1.44 per cent over the corresponding average of the previous year. The annual average of this Index has also shown a nominal increase of 1.39 per cent in 2002 over 2001.