4.

PRICES, WAGES AND PUBLIC DISTRIBUTION

PRICES Price Index is a statistical tool to measure

the relative change in the price level with
4.1 Prices of commodities are one of the most
reference to time, geographical location and
important factors responsible for change in
other characteristics. It is also considered as a
the pattern of consumption besides the real
barometer of economic activity.
income. The State Government constituted a
Study of changes in consumer prices are of
committee to suggest measures to control
concern to Government as they are likely to
prices of essential commodities commonly
affect a large section of the population.
consumed by majority sections of the society.
Consumer Price Index is of great relevance
The essential commodities being monitored
for this purpose and is used as a device for
are Rice, Redgramdal, Groundnut Oil,
measuring changes in the level of retail
Tamarind (without seed), Red Chillies (dry)
prices of goods and services paid by
and Onions. Directorate of Economics and
concerned population segments. The classes
Statistics has been collecting the prices of
of people usually covered by these indices
these commodities from selected centres
are the Industrial Workers and Agricultural
across the State on daily basis.
Labour.
The Average Daily Retail Prices of Rice (II
Consumer Price Indices for Industrial
sort), Groundnut Oil, Common Tamarind
Workers (CPIIW):
(without seed) and Onions (Gr II) have
The Consumer Price Indices for Industrial
shown increasing trend, where as
Workers (CPIIW) Old Base 1982=100 is
Redgramdal (II sort) and Red Chillies Dry
replaced with New Base 2001=100 from
(Gr. II) price have decreased during the year
January, 2006. For construction and
2010 when compared to 2009.
compilation of CPI Numbers for Industrial
Workers with New Base 2001=100, twelve
new centres were selected in Andhra
Table 4.1 Pradesh both for Central and State Series
State Average Daily Retail Prices of based on Industrial workforce. The newly
Essential Commodities selected centres are [Link],
[Link], 3. Warangal, [Link],
(Rs./Kg) [Link], [Link], [Link]-
Commodity Jan-Dec. Jan-Dec. nagaram-Chittivalasa, [Link]-
2009 2010 Rajahmundry, [Link] -Miryalaguda,
[Link] - Renigunta, 11. Kothagudem-
Rice (II sort) 16.70 17.48 Palwancha and 12. Nizamabad- Bodhan.
Redgramdal (II sort) 60.05 59.87 Labour Bureau, Simla compiles the index
for the first six selected centres since they are
Groundnut Oil 65.23 77.37
treated as Central Series, while the State
Common Tamarind 34.42 47.05 Directorate of Economics & Statistics
(Without seed) compiles the index covering remaining six
Red Chillies Dry complex centres in A.P.
59.98 56.72
(Gr II) Consumer Price Indices for Industrial
Onions (Gr II) 12.58 14.57 Workers (CPI – IW) increased by 11.7% and
12.1% in the State and All India respectively
Source: Directorate of Economics and Statistics. during the year 2010 when compared with
2009. The centre wise details are given in
Annexure 4.1.

19
 Consumer Price Index Numbers for Chart 4.1
Agricultural Labour (CPI – AL) S tate Average Daily Wages of Artisans & Field
Labour
The Labour Bureau, Simla compiles the

143

142
160
Consumer Price Index Numbers for

132

123

114
110

109
Agricultural Labour (CPI-AL) with 1986-87

Daily Wage (Rs.)

120

96
as base year. During 2010 the Consumer

86

85
80
Price Index Numbers for Agricultural Labour
increased by 11.43% in the State and 11.94% 40
at All India when compared to the previous
year. 0

Labour
Cobbler

Labour
Women
Carpenter

Blacksmith

Filed

Men

Filed
Table 4.2
Consumer Price Index Numbers for
2009 (Jan-Dec) 2010 (Jan-Dec)
Agricultural Labour
(Base : 1986-87 =100) (Wages rounded of to nearest Rupee)
Year Andhra All India
Pradesh
Jan-Dec. 2009 516 494 The Average Daily Wages of Artisans and
Jan-Dec. 2010 575 553 Field Labour (both men and women) have
increased during the year 2010(Jan-Dec.)
Percentage when compared to the previous year.
11.43 11.94
Change
Source: Labour Bureau, Simla
***
WAGES PUBLIC DISTRIBUTION
4.2 On account of various social and economical Fair Price Shops:
factors, Agricultural labour and Artisans in 4.3 There are 44,498 Fair Price Shops
the rural areas constitute the weakest functioning in the State as on 30.11.2010.
segment of labour force. They are in Un- Out of them 6,586 are in urban areas and
organised Sector. To frame a wage policy for 37,912 are in rural areas. On an average, each
this group, the wages data is being collected shop is having 535 cards / families. As
from (69) centres spread over the State. against Government of India’s norm of one
Average Daily wages of Artisans and Field Fair Price Shop for every 2,000 persons,
Labour in the State are presented in Table 4.3 there is one shop for every 1,965 persons in
and in the Chart 4.1. Andhra Pradesh.

Table 4.3 Rationalization of Fair Price Shops

State average Daily Wages of Artisans To ensure effective functioning of PDS and
and Field Labour2009 and 2010 to enable card holders to have access to the
Category Jan-Dec. Jan-Dec. F.P. Shop without traversing a long distance,
2009 2010 Rationalization of existing [Link] has
Carpenter 132.28 142.95 been done.
Blacksmith 110.22 122.68 Rural areas: Ration cards attached to each
Cobbler 85.89 96.30 [Link] is 400 to 450 BPL and 50 Pink
Field Labour cards.
Men 114.28 142.14 Urban Areas: Ration cards attached to each
Women 85.43 108.51 F.P. Shop is 500 to 550 BPL and 250 Pink
Source: Directorate of Economics and Statistics cards.

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Municipal Corporations: Ration cards Following is the ration card position (as per
attached to each F.P. Shop is 600 to 650 BPL dynamic key register 20.12.2010):
and 250 Pink cards.
1 White 1,79,16,901
Subsidy Rice Scheme – Rs.2/- a Kg. Rice 2 AAY 15,57,800
Scheme: 3 Annapurna 93,200
Government of Andhra Pradesh views the 4 Pink 29,94,431
supply of rice at the subsidized rate of Rs.2/- Total 2,25,62,332
per Kg. to the below poverty line families
through Targeted Public Distribution System As per results so far achieved, 17 lakh ration
(TPDS) as of paramount importance. It is an cards were deleted after survey. However,
important constituent of the strategy for residual grievances, if any, are also being
Below Poverty Line (BPL) people. currently entered at the State level. About
Government’s endeavor is to implement 4.48 lakh BPL cards were re-issued (missing
TPDS, to the best advantage of the in database).
beneficiaries, effectively, efficiently and
transparently. For the financial year 2010-11 Aadhaar:
Rs.3,000 crore has been provided in the The mandate of the Unique Identification
budget towards subsidy for the subsidized Authority of India (UIDAI) is to issue a
rice scheme for supply of rice to BPL Unique Identification number (UID) to all
families at Rs.2/- per kg. residents of India. This project is being
implemented by the Government of India in
Kerosene: coordination with State Governments.
A quantity of 49,644 KLs. of Kerosene is In Andhra Pradesh, Food and Civil Supplies
being allocated per month for distribution to Department is designated to function as
all the BPL cardholders. Registrar for the 1st phase of UID Project in
the districts of Adilabad, Anantapur,
Issue of Iris Based Ration Cards: Chittoor, East Godavari, Hyderabad, Ranga
Ration Cards have been issued by using the Reddy and Srikakulam, which will cover
iris technology with a view to cover all the enrolment of about 3 crore residents on
eligible families and to avoid duplicate/ ghost saturation basis. The setting up of Enrolment
cards. The annual family income for white Centres by the agencies and Enrolment of
ration cards is upto Rs.60,000 in Rural areas residents in the seven districts is going on.
and upto Rs.75,000 in Urban areas. In
respect of AAY and Annapurna schemes, the Procurement of Paddy, Maize and other
guidelines prescribed by Government of coarse grains/ pulses at Minimum Support
India have been followed. Price (MSP)
De-duplication and Cleansing of Ration Minimum Support Price (MSP) is being
Cards through Field Verification: ensured to the farmers for their produce. In
The integrated survey was taken up for order to facilitate disposal of paddy which
weeding out bogus, duplicate and ineligible does not conform to the specifications,
ration cards and rationalization of ration card Government relaxed specifications for
database through out the state from August, purchase of paddy imposing cuts in the
2009 in 4 phases in all the districts. The value/ MSP.
exercise was followed by Gram Sabha It has been made incumbent on the part of
process for Grievance Redressal Mechanism, the rice millers that they should purchase
before the removal of cards. The physical paddy of Fair Average Quality (FAQ) at a
verification has been completed covering price not less than minimum support price
‘Indiramma’ Housing and Pension schemes, i.e. Rs.1030/- per quintal for Grade A and
Field verification, Gram Sabhas and petitions Rs.1000/- per quintal for common. Rice
disposal process. millers who purchase FAQ paddy at a price

21
not less than MSP and above or non – FAQ being supplied @ 1 litre per card at Rs.35/-
paddy with value cuts as prescribed by the per litre. So far 3,31,633 MTs. Palmolien
Government alone are permitted to deliver Oil has been distributed through PDS since
levy to the Food Corporation of India. July, 2008.
Redgramdal:
Procurement of paddy and maize by The Civil Supplies Corporation makes
Government Agencies under MSP operations available the Redgramdal for distribution to
is shown below: BPL families at subsidized rates through the
Paddy and Maize procurement under PDS. Redgramdal is being allotted to all BPL
MSP cardholders @ Rs.50/- per kg. at the scale of
(Lakh MTs) distribution of 1kg per family w.e.f.
Item 2009-10 2010-11 December 2010. So far, 2,09,265 MTs. of
(as on 20.12.2010)
Redgramdal has been distributed through
Paddy 4.52 1.60
PDS since July, 2008. Both the GOI and
Maize 0.068 0
State Government are incurring subsidy in
supply of Redgramdal.
Procurement and distribution of Rice during
2009-10 and 2010-11 is shown below Yellow Peas:-
.
Procurement and Distribution of Rice All cardholders are being supplied @ 1 Kg.
Year Procurement Distribution
during Crop during
per card @ Rs.17.00 per Kg in all the areas
year ([Link]) Financial Year w.e.f., September, 2009. So far, a quantity
(Lakh MTs) (Lakh MTs) 909 MTs of yellow Peasdal has been released
2009-10 75.52 34.33 under PDS. Government of India is providing
2010-11 subsidy to the agency that supplies yellow
(as on 7.17 24.17 peas to the State Government.
20.12.2010)

Channadal:-
Market Intervention Scheme:
Distribution of Palmolein Oil, Redgramdal, All BPL cardholders are being supplied @ 1
Yellow Peas and Channadal to the BPL Kg. per card @ Rs.30.00 per Kg. in all the
cardholders is being done through Public areas w.e.f., October, 2009. So far, a
Distribution System to control the prices in quantity of 2,141 MTs. of Chanadal has been
the open market and also enable financial released under PDS. Government of India is
ease to the BPL families from rising prices. providing subsidy to the Agency that
Palmolein Oil: supplies chik peas to the State Government.
For supply of imported RBD Palmolein oil to
BPL families at subsidized rates through
PDS, the Civil Supplies Corporation
purchases Palmolein Oil under GOI subsidy ***
scheme and make available for distribution
through PDS. All the BPL card holders are

22