Context:
Recently, the Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy launched the Version 4.0 of Price Monitoring System (PMS) Mobile app.
Relevance:
Facts for Prelims
Overview of the Price Monitoring System App
- The Price Monitoring Division (PMD) within the Department of Consumer Affairs oversees the monitoring of essential commodity prices.
- In 2021, the department introduced a mobile application, the PMS App, designed to enhance the accuracy of daily price data collected from price reporting centers.
- Retail and wholesale prices are sourced daily from approximately 550 centers via state civil supplies departments, utilizing the department-developed mobile app.
Commodities Monitored
- Current Commodity List:
- Initially, 22 essential commodities were monitored including Rice, Wheat, Atta, various Dals (Gram, Tur, Urad, Moong, Masur), Sugar, Gur, several oils (Groundnut, Mustard, Vanaspati, Sunflower, Soya, Palm), Tea, Milk, Potato, Onion, Tomato, and Salt.
- Recent Additions:
- An additional 16 items were recently included: Bajra, Jowar, Ragi, Suji, Maida, Besan, Ghee, Butter, Brinjal, Egg, Black Pepper, Coriander, Cumin seed, Red chillies, Turmeric powder, and Banana.
- Coverage Impact:
- These 38 commodities now represent approximately 31% of the total CPI weights, an increase from the 26.5% coverage by the original 22 commodities.
Significance of the Monitoring System
- The data collected through this system provides crucial insights for policy-making, particularly in informing the government, the Reserve Bank of India (RBI), and economic analysts about trends in Consumer Price Index (CPI) inflation, aiding in more informed decision-making to address economic and consumer issues.
