Prices are an important economic variable in market economy. From the economic analysis point of view, prices are the means of aggregation for providing an overview of the performance taking various products with large number of variation in their qualities. Prices of agricultural products and by-products have a significant influence on formulation of production plans and policy decisions relating to taxes levied on agricultural income & subsidies provide to farmers on agricultural inputs. In many countries type and volume of agricultural production activity very much depend on the current market prices of various products. The relative changes in prices received by the farmers for the produce and paid by them for meeting input requirement and consumer demands influence their economic activities.
Operation of the Scheme
The Time Series Data on various are prices are of immense use for building up different economic indicators and models through which the oscillation of the economy could be perceived. The price collection schemes is in operation since 1975 in the Directorate of Economics and Statistics,, Odisha.
The objectives for collection of the price data through different schedules are as follows:
To collect and compile Price Statistics.
To study price movement of various commodities.
To prepare State Weighted Average Farm Harvest Price for onward transmission to the Ministry of Agriculture, Government of India, New Delhi.
To prepare Annual State Weighted Average Wholesale Price to be used in different publications like Economic Survey of Odisha, Statistical Abstract and for the compilation of State Domestic Product as well as District Domestic Product.
To prepare the monthly Consumer Price Index (Rural) & (Urban) of the State as per instruction and guidance of the C.S.O.
To prepare the Annual State Average price & District Average price on Live Stocks, its products and by-products, cattle feed for the compilation of State Domestic Product as well as District Domestic Product.
To compile District Level C.P.I. on monthly basic as per instruction and guidance of the CSO, Government of India.
Scope and Coverage
The entire State covering all Subdivisions and almost all crops produced in the State along with other items and items on various domestic animals and birds, animal products and by-products, meat, fish, egg, milk and milk products have been brought under the scope of price collection. In addition to these, Rural & Urban retail prices of various consumer items are being collected. At present, coverage in respect of area and items for each type of work are as follows:
I. Farm Harvest prices of 101 Agricultural commodities in Schedule-1 are being collected from the 116 selected feeding villages tagged with 116 primary markets.
II. Producers’ prices in respect of 116 Agricultural commodities in Schedule-1 are also collected in Schedule-1 from the feeding village or Primary market.
III. Wholesale prices in respect of 101 Agricultural commodities for Schedule-2 are being collected either from the selected primary markets or the Business centres like Mundies, Mills etc.
IV. The Rural retail prices in respect of 219 essential commodities are being collected in Schedule-3 from the 116 selected primary markets of the State. Similarly, the Urban retail prices of essential commodities are also being collected form the 30 urban markets (district headquarters) of the State.
V. Only one selected Cattle Market is covered under collection of Producers’ prices of Animals & Birds for Schedule-4 in respect of 5 items in each district.
VI. Only one Centre i.e. District Headquarters is covered under the collection of Producers’ prices of Milk & Milk product, Meat, Fish & Egg (Schedule-5) in each district.
VII. The Producers’ prices of Animal product & By-product of 19 items are also collected in Schedule-6 from the District Headquarters of the State.
VIII. The Wholesale prices of cattle feed (Schedule-7) of 20 items are being collected from 30 District Headquarters of the state.
Utility of Price data for the benefit of the State and people:
i. The price data at the district level are collected regularly by SA/PI/SSFI/ SFI both for Rural and Urban area for different commodities from the rural and urban centres and cattle markets
ii. Compilation of different indicators as mentioned in the objective of the scheme.
The price data are being used for the following purposes.
i. Estimation of State Income.
ii. Fixation of procurement and support prices.
iii. Construction of parity indices.
iv. Preparation of Producers’ price indices.
v. Taking up adhoc studies on the economic condition of farmers and other analytical studies.