During the year 2003-04 the overall availability and prices of essential commodities have generally remained at a satisfactory level. Barring the increase in prices of some varieties of edible oils due to hike in international prices coupled with lower production last year, no perceptible price rise or shortages were reported for any essential commodity. The annual rate of inflation in terms of Wholesale Price Index (WPI) numbers recorded a modest increase of 4.7 per cent during the year 2003-04 as compared to 6 per cent in the corresponding period a year ago. In the case of Consumer Price Index (CPI), the annual inflation rate for the year ending 2003-04 was lower at 3.5 per cent compared 4.1 per cent in 2002-03.

In the year 2003-04, the Department of Consumer Affairs, monitored the retail prices of 12 essential commodities, namely, rice, wheat, gram, arhar, sugar, groundnut oil, mustard oil, vanaspati, salt, tea, potato and onion on a daily basis, and wholesale prices on a weekly basis covering 18 and 37 centres respectively. In addition to these commodities, two more items viz., milk and atta have been added for price monitoring from 2 July 2003. The High Powered Price Monitoring Board (HPPMB) monitored the prices and availability of essential commodities, based on reviews prepared by the Price Monitoring Cell (PMC) of the Department. The HPPMB met once in every month to review the price and availability scenario. In order to augment the availability of essential commodities, imports of commodities in short supply such as edible oils and pulses, were allowed at reduced import duties.

Movements in the Wholesale Price Index (WPI) numbers during 2003-04 indicated that while the WPI of Manufactured Products with a higher weight of 63.75 per cent in the overall index basket increased by 6.4 per cent, the index number of Fuel items with a lower weight of 14.23 per cent rose by 3.3 per cent. In the case of Primary Articles having a weight of 22.03 per cent, the increase was 1.8 per cent during the period.