Agricultural items likely in PPI basket


Date & Time: 2019-07-23 11:38:49

India is likely to include agricultural items in the planned producer price index (PPI) basket, breaking from the common practice in most OECD countries, to get a better picture of farm-gate prices as well.The idea of introducing producer price index is that it will capture better the prices received by farmers ,PPI measures the average change over time in the selling prices received by domestic producers.The prices included in PPI are from the first commercial transaction for many products and some services.This is seen as a better index than the wholesale price index (WPI). PPI will eventually replace WPI.