11.5.1 Various States and Union Territories also collect price data and compile wholesale price indices on different base years. For instance, Assam compiles its WPI with a base as old as 1953; Tamil Nadu with base 1970-71; West Bengal with base 1980-81. Further, the States compile indices for different groups such as agricultural commodities, manufactured items or both. The number of items in the basket of the various State series also differ significantly. Moreover, there are conceptual and technical difficulties in compiling State-wise WPI numbers. Since the indices being compiled by the various States lack uniformity in base year, item basket, periodicity, derivation of weighting diagram, method of compilation and the sources of data employed, it is impossible to undertake any analysis of regional or state-level wholesale price variations as supposedly reflected by such indices.
Conclusions and Recommendations.
11.5.2 The Commission observed that there are certain conceptual and technical difficulties in the compilation of State-level WPI numbers. It was also observed that many States are currently constructing State-level WPI and using them for different purposes. The Commission, therefore, recommends that:
There is a need to bring uniformity in terms of base year, number of items, derivation of weighting diagram, data sources, etc. in the wholesale price indices compiled by the various States and UTs in order to make any meaningful analysis of regional variation in prices of wholesale transactions. All the State WPIs should have preferably the same base year or around that, as that of the all-India. TAC on SPCL should examine all issues including conceptual and technical difficulties in compilation of State WPI numbers.