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Government of Karnataka

Directorate of Economics & Statistics Bangalore

Government of Karnataka

PRICE TRENDS IN KARNATAKA 2006 – 2010

Directorate of Economics & Statistics Bangalore

2014

No. DES 01 of 2014

ii

PREFACE

The "price" continues to be the cause of concern in the economy of the Country or the

State with the inflation rate moving upward trend. In order to have a comprehensive idea of

the price behavior more closely, it is felt necessary to trace the price movements at different

points of time of the trends in Karnataka in particular and the country as a whole in general

notwithstanding variations in respect of some specific commodities or groups. For this the

prices of commodities are being collected every week/fortnightly/monthly depending on

the requirement from the markets/shops/districts by the Directorate and index numbers are

generated based on these data. Several types of indices are generated to know the price

trends in the State. Price Trends in Karnataka 2006 to 2010 is the Fifth in the series by using

various devices of price measurements.

I acknowledge with thanks to all the shop keepers of both wholesale & retail

selected markets, and Agriculture Produce Marketing Committees (APMCs) of Agriculture

Marketing Department for providing us the prices data.

I also thank all the Price collectors and Supervisors, District Statistical Officers for

their efforts in collecting the prices data.

This publication has been prepared in the Prices section under the guidance of Shri.

A.R.Ravi, Joint Director, SIP Division of the Directorate of Economics & Statistics. I endorse

the efforts of Officers and Officials in processing the data, computing index and bringing out

this publication. I hope this publication will be of use to all those who are interested in price

statistics.

I look forward suggestions for further improvement of this publication

Place : Bangalore Date : 30.05.2014

K.Lakshmipathy

Director

iii

Sl. No

Particulars Page No

1 Introduction ... 1

2 Measurement of Fluctuations in Prices ... 2

3 Price Collection System in Karnataka ... 3

4 Prices Trends

i. Wholesale Prices of Agricultural Commodities ... 4

ii. Retail Prices of Agricultural Commodities ... 8

iii. Wholesale Price Index Numbers of Agricultural Commodities

... 11

iv. (a) Farm Harvest Prices of Agricultural Commodities ... 18

(b) Farm Harvest Price Index Numbers of Agricultural Commodities ... 21

v. Consumer Price Index (CPI) Numbers

a) Industrial Workers ... 24

b) Agricultural Labourers ... 28

vi. Rural Retail Price Index Numbers ... 29

vii. Urban Retail Price Index Numbers ... 32

viii. Agricultural Wages ... 35

CONTENTS

1. INTRODUCTION

Prices play a very significant role in the economic development of a Country or State.

Prices affect both producers and consumers significantly. A rise in prices would upset all

developmental activities and also affect an individual’s household budget. Thus price

movement affects different sections of the population in different ways. Slow and steady

rise in prices is a must for healthy & progressive growth of the country. Whereas the

sudden rise or fall in the prices is bound to have an adverse effect on the whole economy.

The spurt in the prices or the movement of prices with a high acceleration is termed as high

inflation. Abnormal behavior of prices especially in case of food articles, causes a great

concern to administrators and public. The price rise is characterised by rising deficits, high

growth in money supply, depreciating rupee, nominal rates lagging behind real interest

rates and an abysmally low growth of employment.

The mechanism of prices is basically a function of supply and demand. In practical

terms, it therefore depends upon the Gross National Product (GNP) & money supply. The

purchasing power of money varies inversely with the price level. Price is often termed as a

Barometer of real purchasing power of the community. The changes in prices, both in

absolute and relative terms influence a wide range of economic activities and a constant

watch on prices becomes necessary for the operation and regulation of current economic

policies as well as for the purposes of planning and policy formulation. A rise in the price

level means a reduction in the purchasing power of money. Inflation may be caused due to

an excess demand over short supply of the commodities, pumping of more money in the

economy, unwise import/export policies, unsound taxation policies, natural calamities, war,

adverse seasonal conditions etc.

The State implements the policies formulated by the National level. The steps are

taken to ensure stability and to control prices of essential commodities to protect interest of

both consumer and producer, by adopting the procedure of procuring coarse grain from the

farmer at minimum supporting prices fixed by the Government of India, on the other side

the public distribution system was introduced to protect the poorer section of the society.

However the State Governments play a limited role in the matter of controlling prices.

Apart from having a regressive impact on the standard of living of the people, the price rise

also affects the export targets. Thus, the high inflationary pressure would not only erode the

PRICE TRENDS IN KARNATAKA 2006 - 2010

Price Trends in Karnataka Page 1

support for the economic restructuring programme but would also put on a squeeze on the

purchasing power of the poor, thereby further limiting the growth of the home market.

2. MEASUREMENT OF FLUCTUATIONS IN PRICES

Variation in prices are measured by different methods. Among them, two methods

which are extensively used at all-India level are known as “Wholesale Price Index Numbers”

and “Consumer Price Index Numbers”. But none of these two methods cover the entire

range of the economy. The Wholesale Price Index at the national level is based on weekly

price collection of data covering as many as 676 commodities with 5482 quotations. This

index does not cover the services which account for about one third of the Gross National

Product.

A number of CPI series have been available in the Country from time to time because

of the constant need felt for proper wage regulation of an ever increasing labour force and

also the need for proper indicators to guide the formulation of important economic policies.

At National level Consumer Price Index for Industrial Workers, Agricultural Labourers,

Rural Labourers are constructed and released every month by Labour Bureau, Shimla. The

three Consumer Price Indices are primarily computed for wages of blue and white collar

workers in industry and Government services and also for agricultural labourers. These

indices do not cover all the segments of the population in the Country. In order to overcome

the above, the Central Statistics Office (CSO) of the Ministry of Statistics and Programme

Implementation compiles Consumer Price Index for Rural and Urban Areas & releases every

month. Though these indices are confined to a wide range of commodities and services

utilised by a consumer, it covers only the consumer class. Thus the Wholesale and

Consumer Price Indices are used in general for measuring price movement/inflation at the

national level inspite of certain limitations.

At the State level, only for 33 Agricultural Commodities Wholesale Price Index

Numbers are being computed. Like All India level more number of commodities are not

covered on account of the inadequacy of the availability of data such as inflow and outflow

of commodities from State to State especially in respect of price quotations of non–

agricultural commodities and basic data required for working out weighting diagram.

In Karnataka, the following tools are adopted for measuring the price trends.

i. Wholesale Prices of Agricultural Commodities

ii. Retail Prices of Agricultural Commodities

Page 2 Price Trends in Karnataka

iii. The Wholesale Price Index Numbers of Agricultural Commodities

iv. a) Farm Harvest Prices of Agricultural Commodities

b) Farm Harvest Price Index of Agricultural Commodities

v. Consumer Price Index Numbers

a) Industrial Workers

b) Agriculture Labourers

(Complied by Labour Bureau Shimla)

vi. Rural Retail Price Index Numbers

vii. Urban Retail Price Index Numbers

viii. Agricultural Wages

As already mentioned, each of the above price measurements has a limited coverage

of goods, services and population.

3. PRICE COLLECTION SYSTEM IN KARNATAKA

The Directorate of Economics and Statistics (DES) was made the sole authority

during 1983 for all price statistics generated at the State level in view of the increasing role

this organisation has to play in the field of prices. Accordingly, the District Statistical Offices

has been collecting fortnightly Wholesale and Retail prices of 110 commodities from district

head quarter, Agricultural Produce Marketing Committees (APMCs) of Agricultural

Marketing Department. This information is collected to build up time series data of the State

and for preparation of periodicals.

The wholesale prices are being collected from APMCs on a weekly basis by DES for

computing Wholesale Price Index. Besides, the Wholesale & Retail prices of 20 important

essential commodities are being collected on every Monday by the District Statistical Offices.

Farm Harvest Prices are being collected by the staff of District Statistical Offices,

during the peak marketing period for three seasons viz; Kharif, Rabi, Summer. Similarly

retail prices are collected from 11 specified centres for computing Consumer Price Index

Numbers for Industrial Workers. Further, retail prices from selected villages are also being

collected for computing Rural Retail Price Index Numbers. In addition to this Agricultural

wages are also being collected for knowing the movements in agricultural wages among

skilled labourers and agriculture labourers in the dry, wet and garden lands. As above the

District Statistical Offices & APMCs are the main data suppliers of price statistics.


4. PRICE TRENDS

An attempt has been made here to study the price trends/fluctuations in the State

from 2006 to 2010 based on different tools as explained in the previous paragraphs.

i. Wholesale Prices of Agricultural Commodities:

"Wholesale Price" is defined as the price at which a commodity is sold to the sellers

or processors and not for ultimate consumption. The wholesale price in this case is the

“Model Price” which means the price of the commodity at which the largest transaction

takes place.

The important commodities nearly about 29 commodities are taken from Wholesale

and Retail Price of 110 Commodities Report. These wholesale prices have been collected

fortnightly from the district head quarter Agricultural Produce Marketing Committees

(APMCs) by Distirict Statistical office. The formula used in computing this report is "Simple

average ".

Average Wholesale prices (in Rs. per quintal) of Agricultural commodities from the

year 2006 to 2010 along with percentage variation in prices between each year and during

2010 over 2006 are presented in Table – 1.

As can be seen from the table, in 2010 when compared with 2006, the percentage

variation in price rise was very high in case of Onion(209.23%) followed by Bajra(106.41%),

Tur(whole)(99.29%) and Jowar(white)(86.54%). The lowest price rise was noticed in case of

Coconut(7.96%). The wholesale price has shown a rise among 17 commodities in 2006, 22

commodities in 2007, 26 commodities in 2008, 24 commodities in 2009 and 24 commodities

in 2010 compared to the corresponding prices in previous years. However wholesale prices

of Rice(coarse), Wheat(white), Ragi, Bajra, Maize, Tur(whole), Groundnut(seeds), Dry

Chillies(byadgi), Potato, have shown a continuous rise from 2006, in case of Paddy(fine),

Paddy(coarse) price rise was continuous from 2007 onwards. The prices of the remaining

commodities were fluctuating between 2006 and 2010.

In the year 2006 over the prices of 2005, except the prices of Paddy(medium),

Paddy(coarse), Jowar(white), Groundnut, Coconut Oil, Gur(both ball & square),

Coconut(per 1000), Onion and Cotton(lint) & Cotton(kapas), prices of all other commodities

have shown a rise. Blackgram(whole)(51.95%) has shown a highest price rise followed by

Greengram(whole)(36.69%) and Dry Chillies (byadgi)(26.68%) and the lowest rise was

recorded in case of Groundnut Oil(1.06%). In case of Paddy(fine) no variation in price was

observed. The price fall was much higher in case of Onion(-23.10%) during 2006.


Table - 1 Average Wholesale Prices of Important Agricultural Commodities in Karnataka from 2006 to 2010

(Rs.Per Quintal) Sl

No. Commodity 2005 2006 2007 2008 2009 2010 % variation 2010 over 2006

1 Paddy (fine) 755 755 786 1008 1260 1310 73.51 (0.00) (4.11) (28.24) (25.00) (3.97)

2 Paddy (medium) 640 634 683 853 1224 1094 72.56 -(0.94) (7.73) (24.89) (43.49) -(10.62)

3 Paddy (coarse) 618 610 614 767 916 946 55.08 -(1.29) (0.66) (24.92) (19.43) (3.28)

4 Rice (fine) 1699 1758 1809 2190 2989 2973 69.11 (3.47) (2.90) (21.06) (36.48) -(0.54)

5 Rice (medium) 1464 1506 1540 1863 2464 2424 60.96 (2.87) (2.26) (20.97) (32.26) -(1.62)

6 Rice (coarse) 1004 1064 1107 1446 1530 1810 70.11 (5.98) (4.04) (30.62) (5.81) (18.30)

7 Wheat (white) 1091 1252 1401 1524 1598 1832 46.33 (14.76) (11.90) (8.78) (4.86) (14.64)

8 Jowar (white) 789 758 971 1386 1188 1414 86.54 -(3.93) (28.10) (42.74) -(14.29) (19.02)

9 Ragi 539 581 762 820 962 1026 76.59 (7.79) (31.15) (7.61) (17.32) (6.65)

10 Bajra 529 593 708 795 798 1224 106.41 (12.10) (19.39) (12.29) (0.38) (53.38)

11 Maize 541 579 713 772 810 893 54.23 (7.02) (23.14) (8.27) (4.92) (10.25)

12 Tur (Whole) 1710 1835 2062 2475 3540 3657 99.29 (7.31) (12.37) (20.03) (43.03) (3.31)

13 Greengram (whole) 2431 3323 3260 3304 4533 5875 76.80 (36.69) -(1.90) (1.35) (37.20) (29.61)

14 Blackgram (whole) 1979 3007 3047 2970 3524 3841 27.74 (51.95) (1.33) -(2.53) (18.65) (9.00)

15 Gram (whole) 1984 2313 2644 2777 2707 2536 9.64 (16.58) (14.31) (5.03) -(2.52) -(6.32)

16 Groundnut 1751 1701 2337 2577 2494 2724 60.14 -(2.86) (37.39) (10.27) -(3.22) (9.22)

17 Groundnut (seeds) 2766 3100 3358 3861 4335 4381 41.32 (12.08) (8.32) (14.98) (12.28) (1.06)

18 Groundnut oil 5374 5431 6211 6850 6439 6795 25.12 (1.06) (14.36) (10.29) -(6.00) (5.53)

19 Coconut oil 7585 7180 6824 6987 7307 8248 14.87 -(5.34) -(4.96) (2.39) (4.58) (12.88)

20 Gur (Ball) 1635 1622 1368 1722 2625 2903 78.98 -(0.80) -(15.66) (25.88) (52.44) (10.59)

21 Gur (Square) 1712 1623 1471 1775 2678 3004 85.09 -(5.20) -(9.37) (20.67) (50.87) (12.17)

22 Sugar (open market) 1716 1818 1452 1653 2483 3088 69.86 (5.94) -(20.13) (13.84) (50.21) (24.37)

23 Chillies dry (Byadgi) 4802 6083 6772 7300 7380 8201 34.82 (26.68) (11.33) (7.80) (1.10) (11.12)

24 Coconut (per 1000) 6174 5453 5402 5858 6360 5887 7.96 -(11.68) -(0.94) (8.44) (8.57) -(7.44)

25 Arecanut (cured/dry) 9980 12150 14273 10911 11082 13252 9.07 (21.74) (17.47) -(23.55) (1.57) (19.58)

26 Potato 650 781 887 917 1302 1318 68.76 (20.15) (13.57) (3.38) (41.98) (1.23)

27 Onion 606 466 1010 783 1206 1441 209.23 -(23.10) (116.74) -(22.48) (54.02) (19.49)

28 Cotton (kapas) 2074 1949 2303 2680 2755 3465 77.78 -(6.03) (18.16) (16.37) (2.80) (25.77)

29 Cotton (lint) 2858 2775 2673 3048 2507 4036 45.44 -(2.90) -(3.68) (14.03) -(17.75) (60.99) Note : Figure in bracket indicate percentage variation over previous year,

Source : Agricultural Marketing Department, Bangalore, DES


Average Wholesale Prices of Important Agricultural Commodities

in Karnataka from 2006 to 2010

Average Wholesale Prices of Important Agricultural Commodities


0

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2007

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2010

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During the year 2007, except the prices of Greengram(whole), Coconut Oil, Gur(both ball &

square), Sugar(open market), Coconut(per 1000) and Cotton(lint), prices of all other

commodities have shown a rise over 2006. As was in 2006, the prices of Coconut Oil,

Gur(both ball & square), Coconut(per 1000) and Cotton(lint) continue to fall even during

2007. Onion(116.74%) has shown a highest price rise whereas in 2006 the price fall of this

commodity was highest with -23.10%. The other commodities which has shown a higher

price rise was Groundnut(37.39%) and Ragi(31.15%) and the lowest price rise was recorded

in case of Paddy(Coarse)(0.66%). The price fall was much higher in case of Sugar(open

market)(-20.13%)

During the year 2008, except the prices of Blackgram(whole), Arecanut, and Onion

all other commodities have shown a price rise over 2007. The prices of Blackgram(whole),

Arecanut and Onion declined during 2008 as compared to its price rise in 2007. Though the

prices of Gur(both ball & square) and Coconut(per 1000), Cotton(lint), declined during 2006

& 2007 continuously, its price has increased during 2008. In 2008, Jowar(white)(42.74%) has

shown a highest price rise over 2007 followed by Rice(coarse)(30.62%) and

Paddy(fine)(28.24%) and the lowest price rise was recorded in case of Greengram

(whole)(1.35%). The price fall was much higher in case of Arecanut(-23.55%).

During the year 2009, out of 29 commodities, except the prices of Jowar(white),

Gram(whole), Groundnut, Groundnut Oil, Cotton(lint) prices of all other commodities have

shown a rise over 2008. In 2009, Onion(54.02%) has shown a highest price rise over 2008

followed by Gur(ball)(52.44%) and Gur(square)(50.87%) and the lowest price rise was

recorded in case of Bajra(0.38%). The price fall was much higher in case of Cotton lint

(-17.75%).

During the year 2010, except the prices of Paddy(medium), Rice(fine), Rice(medium),

Gram(whole), Coconut(per 1000) prices of all other commodities have shown a rise over

2009. The prices of Jowar(white), Groundnut, Groundnut oil were on rise during 2010 from

its price decline in 2009. However, prices of Rice(fine), Paddy(medium ), Rice(medium),

Gram(whole), and Coconut(per 1000) declined during 2010 from its rise in 2009. In 2010,

Cotton(lint)(60.99%) has shown a highest price rise over 2009 followed by Bajra(53.38%) and

Greengram(whole)(29.09%) and the lowest rise was recorded in case of Groundnut

(seeds)(1.06%). The price fall was much higher in case of Paddy(medium)( -10.62%).


ii. Retail Prices of Agricultural Commodities:

"Retail Price" is defined as the price paid by the consumer which includes all taxes

and excludes discount. Along with the wholesale prices, retail prices have also been

collected fortnightly from the district head quarter Agricultural Produce Marketing

Committees (APMCs) of Agriculture Marketing Department by District Statistical Office.

The important commodities nearly about 32 commodities are taken from Wholesale and

Retail price of 110 commodities report.

Average Retail Prices(in Rs. per quintal) of Agricultural commodities from the year

2006 to 2010 along with percentage variation in prices between each year and between 2010

over 2006 are presented in Table – 2.

As can be seen from the table, in 2010 over 2006 the percentage variation in price rise

was very high in case of Onion with 143.16% followed by Tur (split) with 108.51%. The

prices of Rice(coarse), Wheat(white), Maize, Ragi, Tur(split), Greengram(split), Potato, Ghee

(AG mark), Tamarind, Dry Chilles(byadgi), Garlic, Mutton and Egg(A grade) have shown

continuous rise from 2006 to 2010. Year-wise prices reveal that in 2006 when compared with

the prices in 2005, the retail prices increased in case of 25 commodities, in 2007 price rise

was noticed in case of 28 commodities, in 2008 it was 28 commodities, 24 commodities in

2009 and 26 commodities in 2010 as compared to the prices prevailed during the

corresponding previous year. The price of Gur(both round & square), which has declined

during 2006 & 2007, increased continuously in the subsequent four years.

In 2006, as compared to 2005, price varied between the lowest of 0.14% in case of

Bajra to highest of 58.05% for Garlic. Blackgram(split) price rose with 56.21%,

Greengram(split) price with 37.39% rise, and price of Gram(split) with 32.03% rise. During

2006, prices noticed a fall in case of Jowar(white)(-3.40), Gur-ball(-1.59%), Gur-square

(-1.70%), Coconut Oil(-4.60%), Onion(-20.72%), Cashewnut(-0.18%) and Cardamum

(-18.33%).

During 2007, except the prices of Blackgram(split), Gur(ball & Square), Sugar, prices

of all other commodities increased compared to their prices in 2006. Price rise varied from

lowest of 0.41% in case of Cashewnut to highest of 81.46% in case of Onion. The price of

Jowar(white), Coconut Oil, Onion, Cashewnut, Cardamom, which was declined during 2006

rose during 2007.

In 2008, prices Blackgram(split), Coconut Oil, Onion and Arecanut, declined as

compared to the prices during 2007. The least decline was in respect of Blackgram(split)

with only –(8.70%). In 2008, highest increase i.e. 41.34% of price was found in case of Jowar


Table - 2 Average Retail Prices of Agricultural Commodities in Karnataka from 2006 to 2010

(Rs. Per Quintal) Sl


1 Rice (fine) 18.38 19.02 19.54 23.32 32.00 31.44 65.30 (3.48) (2.73) (19.34) (37.22) -(1.75)

2 Rice (medium) 16.02 16.53 16.78 19.98 27.00 26.54 60.56 (3.18) (1.51) (19.07) (35.14) -(1.70)

3 Rice (coarse) 11.84 12.20 12.76 15.44 17.00 20.00 63.93 (3.04) (4.59) (21.00) (10.10) (17.65)

4 Wheat (white) 12.37 14.27 15.59 16.96 18.00 21.00 47.16 (15.36) (9.25) (8.79) (6.13) (16.67)

5 Jowar (white) 9.71 9.38 11.61 16.41 14.00 16.00 70.58 -(3.40) (23.77) (41.34) -(14.69) (14.29)

6 Bajra 7.39 7.40 8.35 10.16 10.00 14.00 89.19 (0.14) (12.84) (21.68) -(1.57) (40.00)

7 Maize 6.73 7.40 8.65 9.22 10.00 11.00 48.65 (9.96) (16.89) (6.59) (8.46) (10.00)

8 Ragi 7.27 7.42 9.34 10.24 11.00 13.00 75.20 (2.06) (25.88) (9.64) (7.42) (18.18)

9 Gram (split) 25.79 34.05 36.33 37.43 37.00 35.00 2.79 (32.03) (6.70) (3.03) -(1.15) -(5.41)

10 Tur (split) 31.02 32.21 36.65 42.55 66.00 67.16 108.51 (3.84) (13.78) (16.10) (55.11) (1.76)

11 Greengram (split) 31.75 43.62 44.24 44.55 60.00 82.00 87.99 (37.39) (1.42) (0.70) (34.68) (36.67) 12

Blackgram (split) 32.27 50.41 49.87 45.53 56.00 73.00 44.81 (56.21) -(1.07) -(8.70) (23.00) (30.36)

13 Gur (Ball) 18.89 18.59 16.34 19.73 29.00 32.00 72.14 -(1.59) -(12.10) (20.75) (46.98) (10.34)

14 Gur (Square) 19.43 19.10 17.75 19.78 29.00 33.00 72.77 -(1.70) -(7.07) (11.44) (46.61) (13.79)

15 Sugar (open market) 18.57 19.81 16.31 17.58 27.00 33.00 66.58 (6.68) -(17.67) (7.79) (53.58) (22.22)

16 Groundnut oil 56.25 57.85 67.02 71.07 66.00 72.00 24.46 (2.84) (15.85) (6.04) -(7.13) (9.09)

17 Castor oil 49.88 50.21 58.41 68.29 74.00 68.00 35.43 (0.66) (16.33) (16.91) (8.36) -(8.11)

18 Coconut oil 84.07 80.20 81.23 69.03 73.00 84.00 4.74 -(4.60) (1.28) -(15.02) (5.75) (15.07)

19 Potato 8.92 10.49 11.43 11.61 15.00 15.00 42.99 (17.60) (8.96) (1.57) (29.20) (0.00)

20 Onion 8.30 6.58 11.94 9.92 15.00 16.00 143.16 -(20.72) (81.46) -(16.92) (51.21) (6.67)

21 Cashewnut 267.12 266.63 267.71 309.13 346.00 340.00 27.52 -(0.18) (0.41) (15.47) (11.93) -(1.73)

22 Arecanut (dry/curdnut) 137.50 147.29 163.80 137.15 129.00 151.00 2.52 (7.12) (11.21) -(16.27) -(5.94) (17.05)

23 Ghee (AG mark) 156.99 158.59 170.65 183.34 201.00 238.00 50.07 (1.02) (7.60) (7.44) (9.63) (18.41)

24 Tamarind 32.10 33.17 33.98 35.18 39.00 45.00 35.66 (3.33) (2.44) (3.53) (10.86) (15.38)

25 Chillies dry (Byadgi) 55.98 68.73 78.47 83.78 84.00 90.00 30.95 (22.78) (14.17) (6.77) (0.26) (7.14)

26 Garlic 26.60 42.04 54.33 68.01 69.55 80.00 90.29 (58.05) (29.23) (25.18) (2.26) (15.03)

27 Pepper 98.47 117.10 149.95 153.51 147.00 183.00 56.28 (18.92) (28.05) (2.37) -(4.24) (24.49)

28 Cardamom 568.22 464.09 502.10 666.79 648.00 695.00 49.76 -(18.33) (8.19) (32.80) -(2.82) (7.25)

29 Mutton 118.06 129.98 148.63 164.73 184.00 209.00 60.79 (10.10) (14.35) (10.83) (11.70) (13.59)

30 Egg 'A' grade (per dozen) 20.67 20.78 24.92 26.85 34.00 35.00 68.43 (0.53) (19.92) (7.74) (26.63) (2.94)

31 Vanaspathi 50.04 50.91 55.63 62.58 53.00 55.00 8.03 (1.74) (9.27) (12.49) -(15.31) (3.77)

32 Kerosene (per litre) 19.61 21.30 25.03 28.59 29.13 31.00 45.54 (8.62) (17.51) (14.22) (1.89) (6.42) Note : Figure in bracket indicate percentage variation over previous year. Source : Agricultural Marketing Department, Bangalore, DES


Average Retail Prices of Important Agricultural Commodities in Karnataka from 2006 to 2010

Average Retail Prices of Important Agricultural Commodities in Karnataka from 2006 to 2010

(white) followed by 32.80% in case of Cardamom and the lowest was in case of

Greengram(split) with only 0.70% price rise.

0.00

10.00

20.00

30.00

40.00

50.00

2006

2007

2008

2009

2010

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Tur (split) Garlic Greengram(split)

Castor oil Blackgram(split)

VanaspathiGroundnutoil

Chilliesdry

(Byadgi)

Coconutoil

2006

2007

2008

2009

2010


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Wholesale Prices Index Numbers of Agricultural Commodities


The price data for computing index is collected through selected 40 Agricultural

Produce Marketing Committiees (APMCs) of Agriculture Marketing Department every

week and also from Spices Board, Coffee Board, Tobacco Board and Sugar Directorate every

month. APMCs have been selected for commodity keeping in view the volume of its (or its

varieties) transactions in the markets during the base year period.

WPI is being used in estimation of State Domestic Product and to study the trends in

prices in the first stages of commercial transaction. The formula used in computing WPI is

"Laspeyers Formula"

Trend in Wholesale Prices and Wholesale Price Index of Agricultural Commodities

are strictly not comparable as due to the following limitations:

1. The wholesale prices data is based on the price information received from the district

head quarter APMCs (which was reported in earlier paragraphs) while the prices

data for the computing wholesale price index are received from the selected 40

APMCs.

2. Market coverage are totally different for wholesale prices and wholesale price Index.

200

300

400

500

600

700

800

900

1000

1100

Fibre Condiments& Spices

Gur & Sugar Oil seeds Cereals AllCommodities

Pulses Miscellaneous

2006 2007 2008 2009 2010


3. Index is a weighted average

4. There is difference in time lag and variety of the commodity.

Wholesale Price Index Numbers of 33 Agricultural Commodities from 2006 to 2010

with yearly percentage variation over the corresponding previous year and percentage

variation in 2010 over 2006 are presented in Table – 3.

As can be seen from the table, All commodities index shows an increasing trend i.e

from 6.80% in 2006, 10.06% in 2007, 18.66% in 2008, 15.41% in 2009, 6.27% in 2010 as

compared to previous years. The index which was 487 in 2006 raised to 780 in 2010 i.e. an

increase of 60.16%. The index of Cereals, Pulses and Miscellaneous groups raised in all the

years under report whereas in case of Oilseeds group index declined in 2009, Gur& Sugar

group index declined in 2007 and rose in subsequent years, index of Fibre declined in 2009.

The index of Condiment & Spices group declined in 2010 when compared with the

corresponding index during the previous years.

Among 33 commodities the index of 8 commodities declined in 2006, 9 commodities

in 2007, only 6 commodities in 2008, 13 commodities in 2009 and 9 commodities in 2010. In

2009, in Oilseeds group out of 6 commodities the index of 4 commodities declined.

Among all the 33 commodities only index of Rice, Wheat and Bajra have shown an

increasing trend in all the years under report. As compared to 2006, only Gram and Leavy

Sugar index has declined in 2010, whereas the index of all other commodities increased. The

highest percentage variation increase in index was observed in respect of Cardamum with

332.52% in case of Onion(180.82%), followed by 134.72% in respect of Tobacco and 111.74%

in case of Rice. The lowest increase of percentage variation was observed in case of

Arecanut(2.44%). The lowest decline of percentage variation was Leavy Sugar(-0.19%).

The Wholesale Price Index Numbers of Selected Groups for all India from 2005-06 to

2009-10 are presented in Table – 4.

As can be seen from the table, except for pulse group declined during 2007-08 over

2006-07 whereas the index of all other groups have shown continuous increasing trend. As

compared to 2009-10 over 2005-06, the highest percentage variation was noticed in case of

Condiment & Spices group with 93.23% followed by Pulse group with 68.31% and Cereals

group with 52.07%.


Table No - 3 Wholesale Prices of Index Numbers of Agricultural Commodities in Karnataka from 2006 to 2010

(Base year: 1981-82=100)

Sl No. Commodity Weights 2005 2006 2007 2008 2009 2010

% variation 2010

over 2006

I . Cereals 29.890 449 468 540 660 867 894

91.03 (4.23) (15.38) (22.22) (31.36) (3.11)

1 Rice 19.500 470 477 521 684 998 1010

111.74 (1.49) (9.22) (31.29) (45.91) (1.20)

2 Jowar 1.170 453 404 606 725 552 673

66.58 -(10.82) (50.00) (19.64) -(23.86) (21.92)

3 Ragi 1.390 344 371 535 523 629 664

78.98 (7.85) (44.20) -(2.24) (20.27) (5.56)

4 Wheat 2.560 457 530 630 649 677 734

38.49 (15.97) (18.87) (3.02) (4.31) (8.42)

5 Bajra 1.740 435 489 578 631 697 732

49.69 (12.41) (18.20) (9.17) (10.46) (5.02)

6 Maize 3.530 375 425 545 580 564 625

47.06 (13.33) (28.24) (6.42) -(2.76) (10.82)

II . Pulses 4.920 487 576 658 711 974 989

71.70 (18.28) (14.24) (8.05) (36.99) (1.54)

7 Tur 2.670 458 471 623 713 1071 977

107.43 (2.84) (32.27) (14.45) (50.21) -(8.78)

8 Gram 1.120 451 577 605 608 575 537

-6.93 (27.94) (4.85) (0.50) -(5.43) -(6.61)

9 Greengram 0.810 572 768 727 750 1083 1429

86.07 (34.27) -(5.34) (3.16) (44.40) (31.95)

10 Blackgram 0.220 738 1158 1144 1106 1354 1857

60.36 (56.91) -(1.21) -(3.32) (22.42) (37.15)

11 Horsegram 0.100 395 534 583 640 1033 887

66.10 (35.19) (9.18) (9.78) (61.41) -(14.13)

III . Oil seeds 17.310 409 416 518 683 645 676

62.50 (1.71) (24.52) (31.85) -(5.56) (4.81)

12 Groundnut 13.460 415 420 535 690 649 699

66.43 (1.20) (27.38) (28.97) -(5.94) (7.70)

13 Sesamum 0.910 466 512 566 838 863 784

53.13 (9.87) (10.55) (48.06) (2.98) -(9.15)

14 Safflower 1.450 432 423 516 721 670 592

39.95 -(2.08) (21.99) (39.73) -(7.07) -(11.64)

15 Sunflower 0.760 219 239 308 381 306 338

41.42 (9.13) (28.87) (23.70) -(19.69) (10.46)

16 Castor 0.290 460 460 567 770 754 844

83.48 (0.00) (23.26) (35.80) -(2.08) (11.94)

17 Linseed 0.440 352 327 383 500 559 514

57.19 -(7.10) (17.13) (30.55) (11.80) -(8.05)


Sl No. Commodity Weights 2005 2006 2007 2008 2009 2010

% variation 2010

over 2006

IV . Gur & Sugar 14.560 394 402 342 373 529 571

42.04 (2.03) -(14.93) (9.06) (41.82) (7.94)

18 Gur 3.700 427 418 322 429 706 724

73.21 -(2.11) -(22.97) (33.23) (64.57) (2.55)

19 Leavy Sugar 4.180 513 513 494 498 503 512

-0.19 (0.00) -(3.70) (0.81) (1.00) (1.79)

20 Free Sale Sugar 6.680 301 323 257 264 447 522

61.61 (7.31) -(20.43) (2.72) (69.32) (16.78)

V . Fibre 9.640 350 369 419 563 542 609

65.04 (5.43) (13.55) (34.37) -(3.73) (12.36)

21 Cotton (kappas) 7.970 350 402 506 608 558 639

58.96 (14.86) (25.87) (20.16) -(8.22) (14.52)

22 Cotton (lint) 1.670 351 324 230 523 465 468

44.44 -(7.69) -(29.01) (127.39) -(11.09) (0.65)

VI . Condiments & Spices 2.270 301

389 455 585 657 623 60.15

(29.24) (16.97) (28.57) (12.31) -(5.18)

23 Dry Chillies 1.210 351 511 579 652 772 649

27.01 (45.58) (13.31) (12.61) (18.40) -(15.93)

24 Cardamom 0.650 155 123 140 262 303 532

332.52 -(20.65) (13.82) (87.14) (15.65) (75.58)

25 Pepper 0.070 410 544 785 841 788 1040

91.18 (32.68) (44.30) (7.13) -(6.30) (31.98)

26 Corriander 0.340 379 434 549 913 900 616

41.94 (14.51) (26.50) (66.30) -(1.42) -(31.56)

VII . Miscellaneous 21.410 602 670 710 766 797 894

33.43 (11.30) (5.97) (7.89) (4.05) (12.17)

27 Onion 1.190 758 511 1120 808 1274 1435

180.82 -(32.59) (119.18) -(27.86) (57.67) (12.64)

28 Potato 0.630 356 483 546 423 688 550

13.87 (35.67) (13.04) -(22.53) (62.65) -(20.06)

29 Tamarind 0.380 459 524 491 532 587 609

16.22 (14.16) -(6.30) (8.35) (10.34) (3.75)

30 Arecanut 7.290 445 656 573 539 510 672

2.44 (47.42) -(12.65) -(5.93) -(5.38) (31.76)

31 Coconut 1.200 404 372 353 382 382 385

3.49 -(7.92) -(5.11) (8.22) (0.00) (0.79)

32 Coffee 8.990 782 793 859 1056 1017 1053

32.79 (1.41) (8.32) (22.93) -(3.69) (3.54)

33 Tobacco 1.730 479 504 593 585 907 1183

134.72 (5.22) (17.66) -(1.35) (55.04) (30.43)

All Commodities 100.00 456 487 536 636 734 780

60.16 (6.80) (10.06) (18.66) (15.41) (6.27)

Note : Figure in bracket indicate percentage variation over previous year,

Source : Agricultural Marketing Department, Bangalore.


Table No - 4

Wholesale Price Index Numbers of Selected Groups for All - India from 2005-06 to 2009-10 (Base year : 2004-05=100)

Sl No.

Group Weights 2005-06 * 2006-07 2007-08 2008-09 2009-10 % variation

2009-10 over 2005-06

1 Cereals 3.37 105.99 116.74 127.86 143.09 161.18

52.07 (10.14) (9.53) (11.91) (12.64)

2 Pulses 0.72 113.34 149.18 144.93 155.84 190.76

68.31 (31.62) -(2.85) (7.53) (22.41)

3 Oil seeds 1.78 90.36 94.49 113.22 131.17 134.97

49.37 (4.57) (19.82) (15.85) (2.90)

4 Fibres 0.88 96.35 101.73 112.33 137.87 140.01

45.31 (5.58) (10.42) (22.74) (1.55)

5 Condiments

& Spices 0.57 94.54

136.71 142.93 151.24 182.68 93.23

(44.61) (4.55) (5.81) (20.79)

Note : 1)Figures in bracket indicate percentage variation over previous year. 2) * New base year from 2005-06 Source : Office of the Economic Adviser, New Delhi.

Wholesale Price Index Numbers of Selected Groups for All - India from 2005-06 to 2009-10

The Wholesale Price Index Numbers of Selected Groups for Karnataka State from

2005-06 to 2009-10 are presented in Table – 5.

It can be seen from the table that, the index of Cereals, Pulses, Miscellaneous

groups have shown a continuous increasing trend whereas the index varied in case of

80.00

100.00

120.00

140.00

160.00

180.00

200.00

Oil seeds Condiments &Spices

Fibres Cereals Pulses

2005-06 * 2006-07 2007-08 2008-09 2009-10


Oilseeds, Gur & Sugar, Fibre & Condiments & Spices groups. The index of all commodities

was 461 in 2005-06 rose to 754 in 2009-10 thus the percentage variation was 63.56%. In

respect of Oilseeds & Fibre there was a decline in 2005-06 & 2009-10. In case of Gur and

Sugar there was continuous fall in price index in 2006-07 to 2007-08 and there was rise in

index in subsequent years. In respect of Condiments & Spices group index has been declined

in 2005-06 and rose in subsequent years. The percentage variation of index in 2009-10 over

2005-06 was higher in Condiment & Spices with 114.47% followed by Pulses with 108.51%,

Cereals with 82.96%, Oil seeds with 61.69%, Fibre with 49.01%, Gur & Sugar with 43.61%.

Table No - 5 Wholesale Price Index Numbers of Selected Groups for Karnataka from 2005-06 to 2009-10

(Base year: 1981-82=100)

Sl No.

Group Weights 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

% variation 2009-10

over 2005-06

1 Cereals 29.890 446 452 478 560 717 827

82.96 (1.35) (5.75) (17.15) (28.04) (15.34)

2 Pulses 4.920 447 505 606 663 740 1053

108.51 (12.98) (20.00) (9.41) (11.61) (42.30)

3 Oil seeds 17.310 422 402 442 545 687 650

61.69 -(4.74) (9.95) (23.30) (26.06) -(5.39)

4 Gur & Sugar 14.560 379 399 389 335 403 573

43.61 (5.28) -(2.51) -(13.88) (20.30) (42.18)

5 Fibres 9.640 434 353 372 430 568 526

49.01 -(18.66) (5.38) (15.59) (32.09) -(7.39)

6 Condiments & Spices

2.270 376 304 418 470 626 652

114.47 -(19.15) (37.50) (12.44) (33.19) (4.15)

7 Miscellaneous 21.410 493 620 698 704 787 810

30.65 (25.76) (12.58) (0.86) (11.79) (2.92)

All Commodities 100.00 439 461 501 545 671 754

63.56 (5.01) (8.68) (8.78) (23.12) (12.37)

Note : Figures in bracket indicate percentage variation over previous year.

Source : Directorate of Economics & Statistics, Bangalore.

Wholesale Price Index Numbers of Selected Groups for Karnataka from 2006 to 2010

200

300

400

500

600

700

800

900

1000

1100

Condiments& Spices

Fibres Gur & Sugar Oil seeds Cereals Pulses Miscellaneous

2005-06

2006-07

2007-08

2008-09

2009-10


iv(a) Farm Harvest Prices of Agricultural Commodities

The Farm Harvest Prices are being collected by this Directorate as per the directions

of Ministry of Agriculture, Agriculture and Co-operation Department, GOI. The Farm

Harvest Price is defined as the average wholesale price at which the commodity is disposed

off by the producer to the trader or buyer during the peak marketing period after the harvest

is over. The price relate to what the farmer ultimately receives for his produce which is

calculated by deducting the transport and other market charges from the wholesale prices

quoted at the APMCs where the produce is disposed off.

For the collection of farm harvest prices, wholesale price of agricultural commodities

are considered taking model prices from APMCs in respect of all the important agricultural

commodities which account for major cropped area which involves bulk of transactions in

the APMCs of Taluk Head Quarters. The prices are being collected for nearly about 32

commodities in all the three seasons i.e. Kharif, Rabi and Summer for about 8 to 10 weeks.

The reports collected from all the District Statistical Offices are consolidated and

State weighted average of farm harvest prices is sent to the Ministry of Agriculture,

Agriculture & Cooperation Department, GOI.

The formula used in computing this report is "Simple & Weighted average”.

State Weighted Average Price =fnpn / pn, Where fn = farm harvest price of nth

district and pn = production figure of agriculture commodity of nth district (District wise

production information is taken from Fully Revised Estimates of Principal crops in

Karnataka)

In all 29 commodities are considered for analysis. Year-wise and Commodity-wise

Farm Harvest Prices for the years 2005-06 to 2009-10 are presented in Table – 6

As can be seen from the below table, the farm harvest prices of Maize, Horsegram,

Tobbaco and Potato increased continuously year after year during the period under report.

When compared with the prices prevailed in 2009-10 over 2005-06, except the prices of

Coconut the prices of all other commodities increased in 2009-10, The highest increase of

price was in case of Tur(150.89%), Tobacco(130.92%) Onion(113.13%), Horsegram(110.79%),

followed by Greengram(101.62%). The least price increase was noticed in case of Blackgram

with only 11.57% variation.


Table No - 6 Farm Harvest Prices of Agricultural Commodities (State weighted average prices) from 2005-06 to 2009-10

(Rs. Per Quintal) Sl

No. Commodity 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 % variation 2009-10 to 2005-06

1 Paddy 568 640 638 774 945 1022 59.69 (12.68) -(0.31) (21.32) (22.09) (8.15)

2 Jowar 632 619 710 910 804 929 50.08 -(2.06) (14.70) (28.17) -(11.65) (15.55)

3 Ragi 583 474 639 713 851 900 89.87 -(18.70) (34.81) (11.58) (19.35) (5.76)

4 Maize 498 569 647 694 756 808 42.00 (14.26) (13.71) (7.26) (8.93) (6.88)

5 Bajra 544 505 627 574 739 749 48.32 -(7.17) (24.16) -(8.45) (28.75) (1.35)

6 Wheat (Rabi) 951 923 1221 1248 1310 1457 57.85 -(2.94) (32.29) (2.21) (4.97) (11.22)

7 Bengalgram (Rabi) 1531 1694 2223 2202 2081 1906 12.51 (10.65) (31.23) -(0.94) -(5.50) -(8.41)

8 Tur 1792 1737 1950 2219 2979 4358 150.89 -(3.07) (12.26) (13.79) (34.25) (46.29)

9 Horsegram 648 862 927 931 1317 1817 110.79 (33.02) (7.54) (0.43) (41.46) (37.97)

10 Greengram 1685 2160 3020 2344 2585 4355 101.62 (28.19) (39.81) -(22.38) (10.28) (68.47)

11 Blackgram 1444 3786 3470 1905 2577 4224 11.57 (162.19) -(8.35) -(45.10) (35.28) (63.91)

12 Avare 1583 1335 1454 1617 2025 2477 85.54 -(15.67) (8.91) (11.21) (25.23) (22.32)

13 Cowpea - - 2130 2070 2068 3691 - - (0.00) -(2.82) -(0.10) (78.48)

14 Sunflower 1604 1619 1970 2517 2074 2155 33.11 (0.94) (21.68) (27.77) -(17.60) (3.91)

15 Drychillies 4610 3114 4283 4834 5357 5107 64.00 -(32.45) (37.54) (12.86) (10.82) -(4.67)

16 Safflower - 1442 1409 2121 2063 2088 44.80 (0.00) -(2.29) (50.53) -(2.73) (1.21)

17 Soyabean - - - 1404 1734 2098 - - - (0.00) (23.50) (20.99)

18 Pepper 6686 7756 8267 12360 11517 12005 54.78 (16.00) (6.59) (49.51) -(6.82) (4.24)

19 Groundnut 1576 1542 1910 2199 2251 2424 57.20 -(2.16) (23.87) (15.13) (2.36) (7.69)

20 Sesamum 2681 2758 2453 2939 4753 4004 45.18 (2.87) -(11.06) (19.81) (61.72) -(15.76)

21 Castor 1143 1347 1602 1865 2508 2375 76.32 (17.85) (18.93) (16.42) (34.48) -(5.30)

22 Sugarcane - 88 118 103 131 145 64.77 (0.00) (34.09) -(12.71) (27.18) (10.69)

23 Cotton (pooled) 2388 2035 2102 2587 2515 2619 28.70 -(14.78) (3.29) (23.07) -(2.78) (4.14)

24 Tobacco 4742 4806 5594 5923 10633 11098 130.92 (1.35) (16.40) (5.88) (79.52) (4.37)

25 Potato 484 516 645 803 953 991 92.05 (6.61) (25.00) (24.50) (18.68) (3.99)

26 Onion - 434 710 633 866 925 113.13 (0.00) (63.59) -(10.85) (36.81) (6.81)

27 Coconut (per 1000 nuts) 5255 5270 4123 4751 4956 4472 -15.14 (0.29) -(21.76) (15.23) (4.31) -(9.77)

28 Arecanut 6680 7720 7653 7570 7643 8898 15.26 (15.57) -(0.87) -(1.08) (0.96) (16.42)

29 Cashewnut 3346 3207 3059 3265 4407 4331 35.05 -(4.15) -(4.61) (6.73) (34.98) -(1.72) Note : 1) Figure in bracket indicate percentage variation over previous year. 2) The information for the year 2004-05 & 2005-06 has been revised due to error in formula. Source : Directorate of Economics & Statistics, Bangalore.


Farm Harvest Prices of Agricultural Commodities

(State weighted average prices) from 2005-06 to 2009-10

Figure 6 - Farm Harvest Prices of Agricultural Commodities

(State weighted average prices) from 2005-06 to 2009-10

0

100

200

300

400

500

600

700

800

900

1000

Sugarcane Onion Ragi Bajra Potato Maize Jowar Paddy

2005-06 2006-07 2007-08 2008-09 2009-10

0

2000

4000

6000

8000

10000

12000

14000

2005-06 2006-07 2007-08 2008-09 2009-10


It is observed that in 2005-06, out of 27 commodities, 14 commodities showed an

upward trend as compared to previous year. The highest price rise was noticed in

Blackgram with 162.19% variation over previous year. The price of Blackgram which was

Rs. 1444/- per quintal in 2004-05 shoot up to Rs. 3786/- per quintal in 2005-06. The least

price rise was noticed in case of Coconut(0.29%). The highest fall in prices was found in case

of Drychilles(-32.45%), whose price fell from Rs. 4610/- per quintal in 2004-05 to Rs. 3114/-

per quintal in 2005-06.

In 2006-07, there was fall of prices of 7 commodities out of 28 commodities whereas

all other commodities increased compared with its prices in 2005-06. The sharpest price rise

was found with Onion(63.59%) followed by Greengram(39.81%) and the lowest rise was in

case of Cotton with only 3.29% variation over previous year. The price fall was highest in

Coconut(-21.76%) and the least in case of Paddy(-0.31%).

Out of 29 commodities, the farm harvest prices of 8 commodities declined in 2007-08.

The prices of the remaining commodities increased as compared to its prices in immediate

previous year. The highest price rise was noticed in case of Safflower with 50.53% followed

by Pepper(49.51%) and the least price rise was noticed in case of Horsegram with only

0.43% variation. The price declined was noticeable in case of Blackgram with -45.10%

variation. The least price fall was observed in respect of Bengalgram(-0.94%).

In 2008-09, out of 29 commodities, the prices of 22 commodities have shown an

increase. The highest increase was in case of Tobacco (79.52% variation) followed by

Sesamum (61.72%) and Horsegram (41.46%). The least increase in prices was of Arecanut

(0.96%). The higher price declined in case of Sunflower with -17.60% variation over its prices

prevailed in 2007-08.

During the year 2009-10 out of 29 commodities except 6 commodities have declined

whereas all other commodities prices showed an upward trend when compared to the

previous year. The highest price was observed in Cowpea(78.48%) followed by

Greengram(68.47%), Blackgram(63.91%). The least price was found in Safflower(1.21%).

Highest decline in prices was in case of Sesamum with (-15.76%).

iv(b) Farm Harvest Price Index Numbers of Agricultural Commodities:

For the computation of farm harvest price index, the prices collected in the peak

marketing seasons are utilized. The objective of computing these indices is primarily to

measure changes in the wholesale prices received by the producers. The weights in


proportion to the value of the production of each commodity during the base year 1961-62

have been made use of for the computation of the index. The weighted arithmetic average is

considered for the construction of index numbers. Index of farm harvest prices of

agricultural commodities is being constructed on the basis of weighted average of farm

harvest prices.

The index numbers for food and non-food crops are computed annually unlike other

indices which are computed once a month.

Farm Harvest Price Index Numbers of Agricultural commodities and their trends

from 2005-06 to 2009-10 are shown in Table – 7.

It can be noticed from the table , the rise in the index of food crops was of the order

of 65.27% and that of non-food crops was 61.10% during 2009-10 over 2005-06. During the

same period, among food crops, the index of Cereals had gone up by 60.95% and that of

Pulses by 111.10%. Among Cereals, the highest increase was in respect of Ragi(78.23%) and

it was Tur(160.01%) under Pulses. Among non-food crops, the index of Oilseeds has gone up

by 57.03%, Fibre by 23.77% and Miscellaneous by 64.94%. Under Oilseeds, the index of

Linseed registered maximum rise(101.67%) followed by Groundnut(56.96%) and the lowest

was in case of Mustard(30.56%). Under Miscellaneous, highest index rise was observed in

case of Tobacco(135.71%) followed by Potato(74.21%) and Sugarcane(64.77%).

Farm Harvest Prices Index Number of Agricultural Commodities

from 2005-06 to 2009-10

1500

2000

2500

3000

3500

4000

Food Crops Non Food Crops All Commodities

2005-06

2006-07

2007-08

2008-09

2009-10


Table No - 7

Farm Harvest Prices Index Numbers of Agricultural Commodities from 2005-06 to 2009-10

(Base: Triennium ending 1961-62=100)

Sl No. Commodity Weights 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 % variation 2009-10

over 2005-06

I . Food Crops 40.967 1574 1598 1775 2116 2363 2641

65.27 (1.52) (11.08) (19.21) (11.67) (11.76)

1 Cereals 39.526 1488 1511 1668 2005 2220 2432

60.95 (1.55) (10.39) (20.20) (10.72) (9.55)

a Paddy 19.376 1631 1665 1708 2046 2498 2702

62.28 (2.08) (2.58) (19.79) (22.09) (8.17)

b Jowar 10.764 1623 1573 1807 2359 2084 2408

53.08 -(3.08) (14.88) (30.55) -(11.66) (15.55)

c Bajra 1.052 1328 1416 1753 1584 2040 2067

45.97 (6.63) (23.80) -(9.64) (28.79) (1.32)

d Maize 0.111 1377 1694 1999 2096 2283 2440

44.04 (23.02) (18.00) (4.85) (8.92) (6.88)

e Ragi 7.562 954 1029 1341 1453 1734 1834

78.23 (7.86) (30.32) (8.35) (19.34) (5.77)

f Wheat 0.661 1519 1630 1781 1994 2093 2328

42.82 (7.31) (9.26) (11.96) (4.96) (11.23)

2 Pulses 1.441 3929 3972 4711 5179 6307 8385

111.10 (1.09) (18.61) (9.93) (21.78) (32.95)

a Gram 0.449 3416 4135 5055 5220 4934 4519

9.29 (21.05) (22.25) (3.26) -(5.48) -(8.41)

b Tur 0.992 4160 3898 4556 5160 6928 10135

160.01 -(6.30) (16.88) (13.26) (34.26) (46.29)

II . Non Food Crops 59.033 2083 2118 2745 2559 3113 3412

61.10 (1.68) (29.60) -(6.78) (21.65) (9.60)

3 Oil seeds 4.912 2670 2753 3196 3871 4066 4323

57.03 (3.11) (16.09) (21.12) (5.04) (6.32)

a Groundnut 4.577 2599 2721 3214 3875 3967 4271

56.96 (4.69) (18.12) (20.57) (2.37) (7.66)

b Sesamum 0.116 3363 3505 3059 3698 5980 5038

43.74 (4.22) -(12.72) (20.89) (61.71) -(15.75)

c Mustard 0.022 3937 3629 3567 3892 4694 4738

30.56 -(7.82) -(1.71) (9.11) (20.61) (0.94)

d Linseed 0.092 3730 2640 2586 3985 5244 5324

101.67 -(29.22) -(2.05) (54.10) (31.59) (1.53)

e Castor 0.105 3817 3252 2999 3802 5113 4842

48.89 -(14.80) -(7.78) (26.78) (34.48) -(5.30)

2 Fibre 3.919 2028 2293 2376 2803 2725 2838

23.77 (13.07) (3.62) (17.97) -(2.78) (4.15)

a Cotton 3.919 2028 2293 2376 2803 2725 2838

23.77 (13.07) (3.62) (17.97) -(2.78) (4.15)

III . Miscellaneous 50.202 2030 2042 2729 2412 3050 3368

64.94 (0.59) (33.64) -(11.62) (26.45) (10.43)

a Sugarcane 48.226 2061 2061 2763 2412 3068 3396

64.77 (0.00) (34.06) -(12.70) (27.20) (10.69)

b Pepper 1.051 1200 1658 1761 2670 2488 2594

56.51 (38.17) (6.21) (51.62) -(6.82) (4.30)

c Tobacco 0.222 1769 1652 2078 2078 3731 3894

135.71 -(6.61) (25.79) (0.00) (79.55) (4.37)

d Potato 0.438 1229 1427 2007 2015 2391 2486

74.21 (16.11) (40.64) (0.40) (18.66) (3.97)

e Dry Chillies 0.265 1198 1563 2072 2286 2533 2415

54.51 (30.47) (32.57) (10.33) (10.80) -(4.66)

All Commodities 100.00 1875 1905 2347 2378 2806 3096 62.52 (1.60) (23.20) (1.32) (18.00) (10.33)

Note : Figure in bracket indicate percentage variation over previous year. Source : Directorate of Economics & Statistics, Bangalore.


v. Consumer Price Index(CPI) Numbers:

a) Consumer Price Index Numbers for Industrial Workers: (CPI-IW)

Index numbers are used to feel the pulse of an economy and are used as indicators of

inflationary or deflationary tendencies. The consumer price index numbers are intended to

represent the average change over time in the prices paid by the ultimate consumers for a

fixed basket of goods and services. The CPI helps in determining the effects of rise and fall

in prices in different classes of consumers living in different areas. This index also helps to

find out how much the consumers of a particular class have to pay for a certain basket of

goods and services in a given period compared to the base period.

The construction of CPI numbers is of great significance, as millions of individuals

whose wages are linked to a consumer price index series. The CPI numbers measures the

average increase in the cost of maintaining the same standard in a given year as in the base

year. Two series are adopted for computing the index in the State viz., Central Series and

State Series. The Consumer Price Index Numbers for Industrial Workers of both the series

from 2006 to 2010 are presented in Table – 8.

Central Series:

In Karnataka, up to 1989, in respect of four centres viz., Bangalore, Ammathi(Kodagu

District), Chickmagalur and KGF(Kolar District) for which CPI(IW) were computed by

Labour Bureau, Shimla with base year 1960. From 1990 onwards, except for Bangalore, the

construction of CPI numbers for the other three centres were discontinued and instead three

new centres viz Belgaum, Hubli-Dharwad & Mercara were introduced & base year was also

shifted from 1960 to 1982. Subsequently, while shifting the base year to 2001, with effect

from January 2006 Mysore centre was also included. At present in respect of 78 industrial

centres in the country, including five centres of Karnataka viz., Bangalore, Belgaum, Hubli –

Dharwad, Mysore and Mercara with base year 2001 Labour Bureau, Shimla constructs CPI

Numbers for Industrial Workers and releases every month. Thus for five centres prices are

being collected by District Statistical Office and sent to Labour Bureau, Shimla for

computation of index.

It can be seen from Table – 8 that the index as compared to 2010 over 2006 Mercara

centre recorded a hike of 50.88% followed by Hubli-Dharwad(47.97%), Bangalore(44.80%),

Belgaum(43.20%), & Mysore(41.46%). During the period from 2006 to 2010 the index of all

the centres increased continuously when compared with the corresponding previous years.


Table No - 8 Consumer Price Index Numbers of Industrial Workers at different selected Centres in

Karnataka and All India from 2006 to 2010

Sl. No Centres 2005 2006 2007 2008 2009 2010 % variation

2010 over 2006

(Base year : 2001=100)

1 Bangalore * - 125 136 150 167 181

44.80 - (8.80) (10.29) (11.33) (8.38)

2 Belgaum * - 125 133 144 162 179

43.20 - (6.40) (8.27) (12.50) (10.49)

3 Hubli - Dharwad * - 123 132 147 164 182

47.97 - (7.32) (11.36) (11.56) (10.98)

4 Mercara * - 114 121 135 154 172

50.88 - (6.14) (11.57) (14.07) (11.69)

5 Mysore * - 123 130 142 160 174

41.46 - (5.69) (9.23) (12.68) (8.75)

(Base year : 1987-88 =100)

6 Bellary 288 309 334 375 417 452

46.28 (7.29) (8.09) (12.28) (11.20) (8.39)

7 Bhadravathi 311 322 346 375 427 446

38.51 (3.54) (7.45) (8.38) (13.87) (4.45)

8 Davanagere 298 321 348 391 445 488

52.02 (7.72) (8.41) (12.36) (13.81) (9.66)

9 Dandeli 330 347 367 396 440 467

34.58 (5.15) (5.76) (7.90) (11.11) (6.14)

10 Gulbarga 293 302 322 364 389 419

38.74 (3.07) (6.62) (13.04) (6.87) (7.71)

11 Harihar 283 297 323 354 378 402

35.35 (4.95) (8.75) (9.60) (6.78) (6.35)

12 Hassan 295 310 326 353 405 443

42.90 (5.08) (5.16) (8.28) (14.73) (9.38)

13 Mandya 313 322 346 383 425 470

45.96 (2.88) (7.45) (10.69) (10.97) (10.59)

14 Mangalore 291 304 327 363 397 435

43.09 (4.47) (7.57) (11.01) (9.37) (9.57)

15 Raichur 312 332 362 407 469 504

51.81 (6.41) (9.04) (12.43) (15.23) (7.46)

16 Tumkur 278 275 296 325 364 389

41.45 -(1.08) (7.64) (9.80) (12.00) (6.87)

State Average 332 349 376 415 464 504

44.41 (5.12) (7.74) (10.37) (11.81) (8.62)

All India* - 123 131 142 157 176

43.09 - (6.50) (8.40) (10.56) (12.10)

Note: 1. Figures in bracket indicate percentage variation over previous year 2.* Indicates Central series with base 2001=100. Source : i) 1 to 5 and All India Labour Bureau, Shimla, GOI ii) 6 to 16 and State average Directorate of Economics & Statistics, Bangalore.


Consumer Price Index Numbers of Industrial Workers at different selected Centres in Karnataka and All India from 2006 to 2010

Consumer Price Index Numbers of Industrial Workers at different selected Centres in Karnataka and All India from 2006 to 2010

100

120

140

160

180

200

Mercara Mysore Hubli - Dharwad Belgaum Bangalore

2006

2007

2008

2009

2010

200

250

300

350

400

450

500

550

Tumkur Harihar Gulbarga Mangalore Bellary Hassan Davanagere Bhadravathi Mandya Raichur Dandeli

2006 2007 2008 2009 2010


State Series:

In respect of State series, Directorate is computing the CPI numbers for Industrial

Workers in the 11 selected centres in the State, they are Bellary, Bhadravathi, Dvanagere,

Dandeli, Gulbarga, Harihara, Hassan, Mandya, Mangalore, Raichur and Tumkur. The base

year is shifted from 1960 to 1987-88 from January 1993 onwards. The necessary item basket

and weighting diagram have been derived separately for each centre on the basis of General

Family Income and Expenditure Survey conducted during 1987-88. The two essential

constitutes of CPI series are (i) weighting diagram (ii) retail prices. General Family Income

and Expenditure Survey includes employees working in Factories, Mines, Plantations,

Motor Transport, Port & Docks, Railways & Electricity sectors. Retail prices for nearly 150

items comprising of goods and services which are generally used by the industrial workers

are being collected weekly/monthly by District Statistical Office for computation of index

for each centre.

CPI(IW) is being utilised by various labour unions, departments, small and large

scale industries for revision of wages and determination of dearness allowances for their

employees.

The formula used in computing Consumer Price Index [IW] is "Laspeyers’ Formula".

Or

Where In = Index Numbers, Pn = Price for current period, Po = Price for base period Qo = Quantity for base period (weights derived by the Family Budget Survey)

Accordingly, on the basis of information collected every month Index Numbers of 11

centres are being constructed seperately in head office and released for the users.

Monthly weighted average of 16 centres is being prepared every month after

converting five centres of central series to the base 1987-88 which are released by Labour

Bureau, Shimla.

On the basis of monthly weighted average Karnataka State Annual Average of

Consumer Price Index Numbers of Industrial Workers is released.

It can be seen from Table – 8 that the movement of index numbers from 2006 to 2010

varied from 34.58% in Dandeli to 52.02% in Davangere. During 2006 to 2010 among the 11

centres except in 2006, Tumkur centre index has been declined whereas all other centres

have shown continuous increasing trend when compared to previous years. However, there

100

PoQo

PnQoIn

100

PoQo

Po

PnPoQo

In


was continuous rise in index of State Average and all India average. State Annual Average

in 2006, 2007, 2008, 2009, 2010 has been increased by 17, 27, 39, 49, 40 points respectively as

compared to corresponding previous years.

v(b) Consumer Price Index Numbers for Agricultural Labourers: (CPI-AL)

The Labour Bureau, Shimla has been computing CPI numbers for Agricultural

Labourers for 20 states including Karnataka with the base year 1986-87. CPI-AL is being

utilised for fixation and revision of wages engaged in agricultural occupations under

Minimum Wages Act, 1948. At all India level from 20 States 600 villages have been selected

for the purpose of collecting the retail prices and this data is being utilised for the

computation of index numbers. The collection of retail prices in the selected villages have

been entrusted to Field Operations Division (FOD) of NSSO, Govt. of India.

Consumer Price Index Numbers for Agricultural Labourers in Karnataka State

and All India from 2006 to 2010

The CPI numbers for Agricultural Labourers for the State of Karnataka and All India

with Food and General Index from 2006 to 2010 are presented in Table –9.

It can be seen from the table that during 2010 over its index in 2006 in Karnataka, the

Food index has increased by 70.29% and the General index by 59.14%. At all India level, the

Food and the General index have increased by 53.55% and 48.66% respectively. Year to year

comparison at the State level and all India level indicates that the food and general index

increased during all the years with different margins. The percentage variation was higher

in the State as compared to the variation noticed at all India.

300

400

500

600

Food General Food General

Karnataka All - India

2006

2007

2008

2009

2010


Table No - 9

Consumer Price Index Numbers for Agricultural Labourers in Karnataka State and All India from 2006 to 2010

(Base year: 1986 - 87 =100)

Sl. No

Year Karnataka All - India

Food General Food General

1 2005 333 338 341 348

2 2006 340 350 366 372

(2.10) (3.55) (7.33) (6.90)

3 2007 385 388 400 402

(13.24) (10.86) (9.29) (8.06)

4 2008 433 431 440 439

(12.47) (11.08) (10.00) (9.20)

5 2009 513 498 500 494

(18.48) (15.55) (13.64) (12.53)

6 2010 579 557 562 553

(12.87) (11.85) (12.40) (11.94)

% variation 2010

over 2006 70.29 59.14 53.55 48.66

Note : Figures in bracket indicate percentage variation over previous year.

Source : Labour Bureau, Shimla.

vi. Rural Retail Price Index Numbers

The rural retail prices in respect of 29 essential commodities are being collected by

the District Statistical Office from each taluk of 2 villages and in each village of 2 selected

shops as on 5th of every month. This data is made use of for preparation of periodicals,

computation of Rural Retail Price Index Number and to know the trends of retail prices in

rural areas. This index number are computed with base year 1970. The index numbers series

is based on unweighted diagram. The formula used in computing this Index is Simple

average of price relatives = P / n, where =P=price relative= pn/ po*100

Rural Retail Price Index Numbers from the year 2006 to 2010 is presented in

Table–10.

As can be seen from the table the retail price index of 13 commodities vize Rice,

Wheat, Ragi, Turdal, Dry chillies, Castor Oil, Milk, Salt, Tea, Coffee, Firewood, Kerosene oil

and Beedi has shown a continuous rise every year during the period under report. The index

of Jowar, Bajra, Coconut oil and Tobacco increased form 2007 onwards till the year 2010 in

respect of other commodities it has fluctuated. But when we look at the index of all

commodities together the retail price index is continuously increased till 2010. The all

commodities index increase was very high during 2009 as compared to its previous year.


Table No - 10 Rural Retail Price Index Numbers in Karnataka from 2006 to 2010

(Base year: 1970=100) Sl


1 Rice 1267 1306 1357 1607 2149 2232 70.90 (3.08) (3.91) (18.42) (33.73) (3.86)

2 Wheat 1134 1270 1413 1556 1766 1937 52.52 (11.99) (11.26) (10.12) (13.50) (9.68)

3 Jowar 1669 1668 2011 2505 2652 2946 76.62 -(0.06) (20.56) (24.56) (5.87) (11.09)

4 Bajra 1454 1442 1605 1695 2071 2439 69.14 -(0.83) (11.30) (5.61) (22.18) (17.77)

5 Ragi 817 836 971 1063 1279 1456 74.16 (2.33) (16.15) (9.47) (20.32) (13.84)

6 Turdal 2164 2261 2568 2908 4541 4967 119.68 (4.48) (13.58) (13.24) (56.16) (9.38)

7 Gramdhal 2064 2467 2816 2926 3021 2886 16.98 (19.53) (14.15) (3.91) (3.25) -(4.47)

8 Uraddhal 1967 3151 3248 2909 3592 4806 52.52 (60.19) (3.08) -(10.44) (23.48) (33.80)

9 Mungdhal 2058 2889 3153 2983 3798 5353 85.29 (40.38) (9.14) -(5.39) (27.32) (40.94)

10 Potato 958 1091 1243 1175 1510 1628 49.22 (13.88) (13.93) -(5.47) (28.51) (7.81)

11 Onion 2297 2072 3131 2823 4122 4685 126.11 -(9.80) (51.11) -(9.84) (46.01) (13.66)

12 Coconut 1359 1229 1244 1284 1343 1324 7.73 -(9.57) (1.22) (3.22) (4.60) -(1.41)

13 Drychillies 827 1066 1230 1328 1693 1743 63.51 (28.90) (15.38) (7.97) (27.48) (2.95)

14 Groundnut Oil 1190 1185 1333 1580 1447 1510 27.43 -(0.42) (12.49) (18.53) -(8.42) (4.35)

15 Coconut Oil 957 948 973 1019 1047 1060 11.81 -(0.94) (2.64) (4.73) (2.75) (1.24)

16 Castor Oil 1299 1303 1389 1569 1909 1926 47.81 (0.31) (6.60) (12.96) (21.67) (0.89)

17 Milk 1155 1188 1267 1448 1491 1727 45.37 (2.86) (6.65) (14.29) (2.97) (15.83)

18 Sugar 1067 1117 910 977 1513 1851 65.71 (4.69) -(18.53) (7.36) (54.86) (22.34)

19 Gur 2251 2218 1860 2128 3330 3833 72.81 -(1.47) -(16.14) (14.41) (56.48) (15.11)

20 Salt 3078 3333 3416 4011 5130 5786 73.60 (8.28) (2.49) (17.42) (27.90) (12.79)

21 Mutton 2089 2308 2548 2735 2701 2897 25.52 (10.48) (10.40) (7.34) -(1.24) (7.26)

22 Tea 2037 2105 2353 2740 3215 3687 75.15 (3.34) (11.78) (16.45) (17.34) (14.68)

23 Coffee 2154 2208 2375 2682 3111 3505 58.74 (2.51) (7.56) (12.93) (16.00) (12.66)

24 Tamarind 1522 1543 1582 1574 1671 1846 19.64 (1.38) (2.53) -(0.51) (6.16) (10.47)

25 Firewood 2290 2339 2485 2844 3321 3756 60.58 (2.14) (6.24) (14.45) (16.77) (13.10)

26 Kerosene Oil 2467 2715 2777 2944 4340 4546 67.44 (10.05) (2.28) (6.01) (47.42) (4.75)

27 Tobbaco 1424 1326 1379 1640 1971 2152 62.29 -(6.88) (4.00) (18.93) (20.18) (9.18)

28 Beedi 2093 2130 2244 2451 2841 3192 49.86 (1.77) (5.35) (9.22) (15.91) (12.35)

29 Washing Soap 704 700 695 650 716 764 9.14 -(0.57) -(0.71) -(6.47) (10.15) (6.70)

All Commodities 1649 1773 1916 2060 2527 2843 60.35 (7.52) (8.07) (7.52) (22.67) (12.50)



Rural Retail Price Index Numbers in Karnataka from 2006 to 2010

Rural Retail Price Index Numbers in Karnataka from 2006 to 2010

When we look at the index of commodities in 2010 over 2006, The highest percentage

increase was noticed in respect of Onion(126.11%), followed by Turdal(119.68%), Mungdal

(85.29%). The lowest increase was noticed incase of Washing soap with only 9.14%.

0

500

1000

1500

2000

2500

3000

2006 2007 2008 2009 2010

0

1000

2000

3000

4000

5000

6000

7000

2006 2007 2008 2009 2010


In 2006, out of 29 commodities, index of 9 commodities declined, only 3 commodities

in 2007, 6 commodities in 2008, only 2 commodities in 2009 and 2010. Year wise comparison

with corresponding years is given below.

In 2006, the index, viz Jowar(-0.06%) Bajra (-0.83%), Tobacco (-6.88%) declined

where as in the subsequent years it rose. The index of Onion (-9.80%), Coconut (-9.57%),

Groundnut Oil (-0.42%), Coconut Oil (-0.94%), Gur (-1.47%), and Washing soap (-0.57%)

declined whereas other commodities have shown an increasing trend. However, the index

increase was very steep in respect of Uraddal (60.19%) and lowest was in respect of Castor

Oil (0.31%).

In 2007, the index declined was only in respect of Sugar (-18.53%) and Gur (-16.14%)

and Washing Soap(-0.71%) The index of all other commodities increased which ranges

between the highest in respect of Onion (51.11%) and the lowest in respect of Coconut

(1.22%).

In 2008 the index of 6 crops declined viz Uraddal (-10.44%), Mungdal (-5.39%), Potato

(-5.47%), Onion (-9.84%), and Tamarind (-0.51%) and Washing Soap(-6.47%). In respect of

the remaining 23 Commodities index shown an increase. The highest rise was noticed incase

of Jowar (24.56%) and lowest in case of coconut (3.22%).

In 2009, only 2 commodities index declined i.e. of Groundnut Oil (-8.42%) and

Mutton (-1.24%). The index of all other commodities have shown an increase. The steep rise

was in respect of Gur (56.48%) followed by Turdal (56.16%) and Sugar (54.86%) and lowest

increase in respect of Coconut Oil (2.75%).

The index of only 2 commodities viz Gramdal (-4.47%) and Coconut (-1.41%)

declined in 2010 as compared to 2009. The steep index rise was noticed in case of Mungdal

(40.94%) and lowest increase was in case of Castor Oil (0.89%).

vii. Urban Retail Price Index Numbers

The wholesale and retail prices of 20 important commodities are being collected from

20 urban centres and in each centre from 3 selected shops as on Monday by District

Statistical Office. This data is made use for preparation of reviews, periodicals and for

computation of Urban Retail Price Index Numbers and to study the trends of retail prices in

urban areas. These index numbers are computed with the base year 1970=100. As in case of

RRPI Numbers the index numbers are based on unweighted diagram.

The formula used in computing this Index is Simple average of price relatives

= P / n, where =P=price relative= pn/ po*100


Urban Retail Price Index Numbers in Karnataka from 2006 to 2010


The Urban Retail Price Index Numbers of 17 commodities from 2006 to 2010 are presented in

Table – 11 along with its percentage variation over the corresponding previous years and

percentage of variation during 2010 over 2006.

600

800

1000

1200

1400

1600

1800

2000

Drychillies Coconut Oil Ragi Sugar Gingelly Oil GroundnutOil

Milk Wheat

2006 2007 2008 2009 2010

500

1000

1500

2000

2500

3000

3500

4000

Onion Rice Potato Jowar Jaggery Coconut Turdal Firewood Charcoal

2006 2007 2008 2009 2010


Table No - 11


(Base year : 1970=100)

Sl No. Commodity 2005 2006 2007 2008 2009 2010 % variation 2010

over 2006

1 Rice 1332 1367 1428 1705 2229 2246

64.30 (2.63) (4.46) (19.40) (30.73) (0.76)

2 Ragi 989 1026 1256 1377 1603 1765

72.03 (3.74) (22.42) (9.63) (16.41) (10.11)

3 Wheat 1930 1307 1505 1593 1763 1930

47.67 -(32.28) (15.15) (5.85) (10.67) (9.47)

4 Jowar 1404 1384 1658 2304 2075 2295

65.82 -(1.42) (19.80) (38.96) -(9.94) (10.60)

5 Turdal 1616 1706 1970 2301 3536 3647

113.77 (5.57) (15.47) (16.80) (53.67) (3.14)

6 Groundnut Oil 1095 1103 1249 1454 1303 1391

26.11 (0.73) (13.24) (16.41) -(10.39) (6.75)

7 Gingelly Oil 1070 1056 1079 1186 1096 1084

2.65 -(1.31) (2.18) (9.92) -(7.59) -(1.09)

8 Coconut Oil 933 886 888 940 940 947

6.88 -(5.04) (0.23) (5.86) (0.00) (0.74)

9 Sugar 986 1031 828 911 1404 1645

59.55 (4.56) -(19.69) (10.02) (54.12) (17.17)

10 Jaggery 1579 1564 1300 1574 2387 2680

71.36 -(0.95) -(16.88) (21.08) (51.65) (12.27)

11 Milk 1090 1117 1188 1328 1439 1538

37.69 (2.48) (6.36) (11.78) (8.36) (6.88)

12 Drychillies 543 712 862 911 1055 1053

47.89 (31.12) (21.07) (5.68) (15.81) -(0.19)

13 Onion 1558 1326 2390 1948 2698 3157

138.08 -(14.89) (80.24) -(18.49) (38.50) (17.01)

14 Potato 1126 1367 1533 1343 1890 1898

38.84 (21.40) (12.14) -(12.39) (40.73) (0.42)

15 Coconut 1880 1655 1705 1726 1659 1678

1.39 -(11.97) (3.02) (1.23) -(3.88) (1.15)

16 Firewood 1709 1863 2049 2300 2631 2797

50.13 (9.01) (9.98) (12.25) (14.39) (6.31)

17 Charcoal 1688 1942 1330 867 1024 1114

-42.64 (15.05) -(31.51) -(34.81) (18.11) (8.79)

All Commodities 1277 1318 1425 1522 1808 1933

46.66 (3.21) (8.12) (6.81) (18.79) (6.91)



As can be seen from the table out of 17 commodities the index of only 5 commodities

viz Rice, Ragi, Turdal, Milk, Firewood increased continuously. In respect of others

commodities the index shown fluctuation. Where all commodities put together i.e all

commodities index has shown an increase every year the highest of 18.79% in 2009. When

compared to the index prevailed in 2006 over 2010, the index of Charcoal (-42.64%)

decreased. The highest percentage increase was noticed in case of Onion with 138.08% and

the least increase in respect of Coconut Oil with 1.39%. During the year under report in 2006

the index of most commodities i.e. 7 out of 17 commodities declined, in 2007 and 2008 the

decline of index in case of 3 commodities & 4 commodities in 2009 and only 2 commodities

in 2010. Year wise comparison as compared to previous corresponding years is given below.

In 2006, the highest index fall was noticed in respect of Wheat (-32.28%) and the steep

increase in case of Dry chillies (31.12%). The lowest increase was in case of Groundnut Oil

(0.73%).

In 2007, the steep rise in index was observed for Onion (80.24%) and lowest was in

respect of Coconut Oil (0.23%). The highest fall in index was of Charcoal (-31.51%).

The Charcoal index fell to the lowest in 2008 also with -34.81%. The highest increase

was in case of Jowar (38.96%) and lowest increase in respect of Coconut (1.23%).

In 2009, Sugar recorded steep rise in index with 54.12% followed by Turdal (53.67%)

and Jaggery (51.65%). However, the lowest rise noticed incase of Milk (8.36%). There was no

change in index of Coconut oil.

In 2010, the index of only 2 commodities viz Gingelly Oil & Dry Chillies declined

very marginally with -1.09% and -0.19% respectively. The highest increase of index was of

17.17% in respect of Sugar and lowest of 0.42% in case of Potato.

viii. Agriculture Wages

"Wages" reflect income earing capacity of workers. Agriculture continues to be the

main stay of the economy of the State as well as All-India. Hence, the Government is keen to

promote the welfare of the agriculturists and agricultural labourers who are involved in the

development of agricultural activities. According to 2001 census, the agricultural labourers

form 10.19% of the Karnataka’s population. Main workers constitute 31.68% of the total

population and the agricultural labourers in turn form 32.16% of the main working force. It

is the desire of the Government to know the wages paid to the agricultural labourers in rural


areas and to study the trends in wages so that suitable measures can be taken up to improve

the socio-economic conditions of the agricultural labour lot. The data on wages paid to

agricultural labourers are being collected by selecting four villages in each taluk of the State.

Agricultural wages paid for Male & Female labourers engaged in Group A,B,C,D

agricultural activities separately for Dry land, Wet Land & Garden Land in prescribed

format are being collected by District Statistical Office. The information related to wages

given in the form of cash to the labourer involved in agricultural activities for more than 8

hours per day is to be collected. In addition, the data is being collected pertaining to skilled

labourers which include Carpenters, Blacksmiths & Mochies. The formula used in

computing this report is "Simple Average".

The State Average Wages of Skilled Labourers viz., Carpenter, Blacksmith & Mochies

during 2006 to 2010 are presented in Table-12(a).

Table -12(a) – State Average Wages of Skilled Labourers in Karnataka

from 2006 to 2010

Year

Skilled Labour

Carpenter Black smith Mochies

2005 101.65 84.02 69.87

2006 104.99 86.48 71.74

(3.29) (2.93) (2.68)

2007 107.67 90.91 75.60

(2.55) (5.12) (5.38)

2008 118.31 97.25 78.47

(9.88) (6.97) (3.80)

2009 132.00 113.00 95.00

(11.57) (16.20) (21.07)

2010 155.40 136.08 109.24

(17.73) (20.42) (14.99)

% variation 2010 over 2006

48.01 57.35 52.27

As can be seen from Table-12(a), the wage paid to the skilled labourers increased

year after year. The wages of Carpenter which was Rs. 104.99 per day in 2006 rose to Rs.

155.40 per day in 2010, there by recording on increase of 48.01%. In case of Blacksmiths, the

wages increased to the tune of 57.35% in 2010 over 2006. The wages to Blacksmith which

was Rs. 86.48 per day in 2006 rose to Rs. 136.08 per day in 2010. The wages of Mochies,

which was Rs. 71.74 per day in 2006 rose to Rs. 109.24 per day in 2010, thereby showing an

increase of 52.27%. The wages of Blacksmith rose much higher than other two types of

labourers as compared to 2010 over 2006.


State Average Wages of Skilled labourers in Karnataka from 2006 to 2010

Further the average wages paid to Male & Female agricultural labourers worked for

4 different types of activities in Dry land, Wet land and Garden land separately for the years

2006 to 2010 are presented in Table - 12(b)

State Average Wages in Karnataka from 2006 to 2010

40

60

80

100

120

140

160

Carpenter Black smith Mochies

Skilled Labour

2006

2007

2008

2009

2010

20

40

60

80

100

120

140

160

180

M F M F M F M F

Group A Group B Group C Group D

Dry Land

2006

2007

2008

2009

2010




20

40

60

80

100

120

140

160

M F M F M F M F


Wet Land

2006

2007

2008

2009

2010

20

40

60

80

100

120

140

160

M F M F M F M F


Garden Land

2006

2007

2008

2009

2010


Ta

ble

12(b

) – S

tate

Ave

rage

of A

gric

ultu

ral w

ages

in K

arna

taka

from

200

6 to

201

0

Year

Dry

Lan

d W

et L

and

Gar

den

Land

Cla

ss A

C

lass

B

Cla

ss C

C

lass

D

Cla

ss A

C

lass

B

Cla

ss C

C

lass

D

Cla

ss A

C

lass

B

Cla

ss C

C

lass

D

M

F M

F

M

F M

F

M

F M

F

M

F M

F

M

F M

F

M

F M

F

2005

72

.49

43.8

2 53

.39

40.1

3 42

.98

35.6

8 49

.15

33.9

8 69

.25

40.8

9 54

.93

41.3

3 40

.76

33.7

2 61

.78

38.7

6 69

.24

42.1

2 54

.81

40.3

4 43

.22

34.5

5 67

.92

48.0

7

2006

79

.45

40.1

2 56

.29

42.0

0 46

.32

36.9

8 51

.90

43.9

6 75

.37

43.1

2 59

.00

44.3

1 47

.63

35.6

2 63

.36

45.5

0 72

.73

42.0

5 56

.24

41.4

3 50

.42

32.9

6 72

.67

53.9

7

(9.6

0)

-(8.4

4)

(5.4

3)

(4.6

6)

(7.7

7)

(3.6

4)

(5.6

0)

(29.

37)

(8.8

4)

(5.4

5)

(7.4

1)

(7.2

1)

(16.

85)

(5.6

3)

(2.5

6)

(17.

39)

(5.0

4)

-(0.1

7)

(2.6

1)

(2.7

0)

(16.

66)

-(4.6

0)

(6.9

9)

(12.

27)

2007

86

.05

47.1

7 61

.81

47.0

5 53

.67

41.7

6 61

.85

45.8

9 83

.03

47.3

2 63

.18

48.1

1 56

.33

38.9

0 84

.90

44.9

8 77

.52

46.4

8 56

.05

43.6

5 48

.35

34.7

79

.24

54.1

8

(8.3

1)

(17.

57)

(9.8

1)

(12.

02)

(15.

87)

(12.

93)

(19.

17)

(4.3

9)

(10.

16)

(9.7

4)

(7.0

8)

(8.5

8)

(18.

27)

(9.2

1)

(34.

00)

-(1.1

4)

(6.5

9)

(10.

54)

-(0.3

4)

(5.3

6)

-(4.1

1)

(5.2

8)

(9.0

4)

(0.3

9)

2008

11

1.83

59

.17

78.7

0 58

.41

60.0

4 48

.27

66.1

0 42

.88

102.

83

55.3

3 78

.30

58.3

4 55

.93

42.6

7 95

.09

63.9

4 96

.07

55.8

5 76

.57

58.0

0 70

.75

41.3

6 92

.95

65.0

8

(29.

96)

(25.

44)

(27.

33)

(24.

14)

(11.

87)

(15.

59)

(6.8

7)

-(6.5

6)

(23.

85)

(16.

93)

(23.

93)

(21.

26)

-(0.7

1)

(9.6

9)

(12.

00)

(42.

15)

(23.

93)

(20.

16)

(36.

61)

(32.

88)

(46.

33)

(19.

19)

(17.

30)

(20.

12)

2009

14

5.00

74

.00

94.0

0 69

.00

76.0

0 64

.00

104.

00

66.0

0 12

8.00

71

.00

95.0

0 70

.00

70.0

0 53

.00

120.

00

81.0

0 12

7.00

69

.00

91.0

0 67

.00

82.0

0 49

.00

112.

00

79.0

0

(29.

66)

(25.

06)

(19.

44)

(18.

13)

(26.

58)

(32.

59)

(57.

34)

(53.

92)

(24.

48)

(28.

32)

(21.

33)

(19.

99)

(25.

16)

(24.

21)

(26.

20)

(26.

68)

(32.

20)

(23.

55)

(18.

85)

(15.

52)

(15.

90)

(18.

47)

(20.

49)

(21.

39)

2010

16

5.40

86

.20

113.

73

85.4

0 86

.16

72.8

3 11

4.36

86

.19

149.

30

84.6

4 11

6.49

86

.00

81.5

8 65

.11

121.

26

80.5

1 15

0.28

82

.62

113.

88

83.0

5 10

5.08

65

.77

131.

99

99.2

2

(14.

07)

(16.

49)

(20.

99)

(23.

77)

(13.

37)

(13.

80)

(9.9

6)

(30.

59)

(16.

64)

(19.

21)

(22.

62)

(22.

86)

(16.

54)

(22.

85)

(1.0

5)

-(0.6

0)

(18.

33)

(19.

74)

(25.

14)

(23.

96)

(28.

15)

(34.

22)

(17.

85)

(25.

59)

%

vari

atio

n 20

10

over

20

06

108.

18

114.

86

102.

04

103.

33

86.0

1 96

.94

120.

35

96.0

6 98

.09

96.2

9 97

.44

94.0

9 71

.28

82.7

9 91

.38

76.9

5 10

6.63

96

.48

102.

49

100.

46

108.

41

99.5

4 81

.63

83.8

4

Not

e A

- Pl

ough

ing,

dig

ging

, hor

row

ing,

sow

ing,

inte

rcul

turi

ng, w

ater

ing

and

upro

otin

g

B

- M

anur

ing,

Tra

nspl

antin

g, W

eedi

ng, H

arve

stin

g, T

hres

hing

, Win

now

ing

and

Pick

ing

(Cot

ton)

C

- A

ctiv

ities

like

cat

tle, s

heep

and

goa

t gra

zing

.

D

- H

arve

stin

g in

are

ca a

nd c

ocon

ut, p

eelin

g of

coc

onut

s an

d ar

ecan

uts,

trim

min

g an

d sp

rayi

ng in

are

ca a

nd c

ocon

ut g

arde

ns a

nd a

ny o

ther

ope

ratio

ns re

latin

g to

are

canu

t and

coc

onut

gar

dens

Figu

re in

bra

cket

indi

cate

per

cent

age

vari

atio

n ov

er p

revi

ous

year

.

Sour

ce :

Dir

ecto

rate

of E

cono

mic

s &

Sta

tistic

s, B

anga

lore

.

Pric

e Tr

ends

in K

arna

taka

Pa

ge 3

9

It has been observed from the table that the wages paid to agricultural labourers

have shown a steep rise during the period from 2006 to 2010.As can be seen from the above

table, the percentage variation in wages for agriculture labourers during 2010 over their

wages in 2006 the wages paid for Group ‘A’ activity in 3 types of lands shows that the wages

was highest for Dry land for both male and female labourers. Whereas in Group ‘B’ activity,

the wage were higher in case of male for Garden land & female labourers in case of dry land.

In Group ‘C’ activities, the wages were on higher side for male and female labourers in

Garden land. Since the activity ‘D’ pertains to Wet and Garden land, the wages paid is higher

for both male & female in dryland.

When we look at the genderwise wages, the percentage increase in the wages paid to

the male labourers was higher than female labourers except group A, B, C in Dry land,

group C in Wet land and group D in Garden land.


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