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Wednesday, July 18, 2012

AICPIN FAQ 3



AICPIN FAQ 3

11. What type of details were collected through family budget enquiries?
Mainly two schedules, one family budget schedule or  Schedule-A and the other
House Rent Survey Schedule or  Schedule-B1, were canvassed amongst the working class 5
families selected for the survey. In the Schedule-A, besides identification particulars of the
family, the information on demographic particulars of the family such as sex, age, marital
status, education standard, economic status, activity status, industry/occupation etc., sources
of income of the family such as family members’ enterprise, paid employment, selfemployment, net rent, other incomes, other receipts were collected, on the one side. On the
other side, details of the family expenditure incurred not only on consumption items such as
cereals, pulses, oils, fats, meat, fish and eggs, milk and related products, condiments and
spices, vegetables and fruits, sugar, honey, non alcoholic beverages, other intoxicants, fuel
and light, house rent and related charges, repairs, clothing, bedding and footwear, medical
care, personal care, education and reading, recreating and amusement, transport and
communication, personal effects, washing, furniture, household appliances, expenditure
incurred on ceremonies but also on non consumption items such as subscription, taxes,
litigation, remittances sent to dependants, savings and investments loans repaid, etc. were
collected. In addition, details relating to indebtedness of the working class families such as
purpose of loan, amount of loan, source of loan, rate of interest paid, nature of security given
etc. were collected. In the Schedule-B1, besides identification particulars of the family,
details of the dwelling in which the family resides such as location, type of building, number
of living rooms, provision of kitchen, bath room, latrine, varandah, courtyard, drinking water
source, furniture, other appliances, rent particulars, category of house such as rented/owned/
free, particulars of tenancy expenditure incurred on electricity/water/sweeper charges, local
taxes, repairs, etc., were also collected. Details collected in the Schedule-A formed the basis
of weighting diagrams and the details collected in Schedule-B1 formed the basis of 6 monthly
house rent surveys for determining variations in rents over time.

12. How was it ensured that details had been collected with due accuracy?
The responsibility of fieldwork was given to trained staff of NSSO. They weresupplied detailed instructions on each of the items given in the schedules. In addition, zonal training, conferences were convened by Labour Bureau for the officers of NSSO wherepoints of doubt were also clarified. The NSSO officers conducted the primary supervision ofthe fieldwork, which was supplemented by Labour Bureau officers. Besides, the detailedscrutiny of the filled-in schedules was also done by Labour Bureau as regards inconsistency in specified codes, total and sub-totals. The results were also examined from the point ofview of prevailing prices and results of earlier surveys. All inconsistencies reconciledwith NSSO before finally adopting the data. The expenditure details wherever relating to 6 households (i.e. family & owners staying with the family) were adjusted for the family by
multiplying with the factor f÷(f+e) where ‘f’ stands for family members and ‘e’ stands forother members of the household. In this connection, it may be mentioned that expenditurereported on ceremonies was suitably split into two parts i.e., for family members and nonfamily members. Only the portion of expenditure relating to family members was accounted or in the index against relevant items. The survey was spread over 12 months so as to account for seasonal variations in expenditure of working class families. A detailed tabulation plan was then prepared and given to Regional Computer Centre (RCC), Chandigarh along with instructions for each entry in the tables for tabulating the data as per the approved estimation procedure. This involved blowing up of sample results to entire population using sampling fraction. The tables received from RCC were also checked for inconsistencies by
Labour Bureau before adopting them for preparation of weighting diagrams.

13. Which items were directly included for price collection and index compilation
and how?
The list of items on which working class families reported expenditure were divided
into two categories namely consumption items and non-consumption items. The nonconsumption items included gifts and charity, ceremonies, fines and penalties, trade union
subscription, income tax, road tax, municipal tax, interest paid, litigation, remittances to
dependants, precious ornaments, land and building, live stock, life insurance premium,
provident fund contribution, savings, chance game and lottery, revenue stamp, loans
advanced, investment in shares and securities, etc. All other items were normally treated as
consumption items and were included in the weighting diagram of the concerned centre.
However, some items which could not be satisfactorily priced overtime were not directly
retained but imputed to related items such as  other cereals, mixed pulses, prepared meals,
dung cake, readymade garments, library charges, hostel charges, pocket expenses, etc. There
were some other items on which expenditure reported was negligible and number of families
reporting expenditure were not significant, such items were also imputed to other related
items.
The total expenditure on consumption items was divided into 6 main groups namely
Food; Pan, Supari, Tobacco & Intoxicants; Fuel & Light; Housing; Clothing, Bedding &
Footwear; and Miscellaneous. The Food group was further subdivided into 8 sub-groups
namely Cereals & Products; Pulses & Products; Oils & Fats, Milk & Products; Meat, Fish
Eggs; Condiments; Spices; Vegetables ; Fruits; and Other Food. The Miscellaneous group 7
was also sub-divided into 5 sub-groups namely Medical Care; Education, Recreation &
Amusement; Transport & Communication; Personal Care & Effects; and Other
Miscellaneous Items. For imputing items to related items, the method used was to add the
expenditure to the items having a broad similarity of price behaviour, satisfying similar want,
produced under the same manufacturing process, etc. Where it was not possible to impute
expenditure to a particular item, it was imputed to a group of items called section, sub-group
or group. This was done on the assumption that group of items taken together reflect the price
behaviour of item(s) imputed. All items which had at least one percent expenditure reported
in the sub-group/group expenditure and/or had significant families reporting expenditure,
could be priced over time satisfactorily were directly retained in the index. It has been found
that each centre has more that 100 items directly retained for price collection. The percentage
expenditure on each item in the sub-group/group represents its weight. Similarly, the
percentage expenditure on sub-group/group in the group/total consumption expenditure
represents their weight. The entire set of weights so prepared is called weighting diagram of
the centre. It may be clarified that with change in coverage and changes in consumption
pattern, relative weights of different groups cannot be expected to be same in old and new
series.

14. Whether durable items and intoxicants were included in the index?
No difference was made between durable or non-durable items. The items were
included in the index if they satisfied the criteria given above. Similarly no distinction was
made between essential and non-essential items. Intoxicant items were included in the index,
if they were preferred by the working class in a centre and there was no prohibition in force
on sale of these items.

15. Which markets and shops were selected for regular price collection?
For selection of markets, Labour Bureau officials visited all the centres and contacted
representatives of employers organisations, workers unions and concerned State
Governments officials to identify areas of working class concentration and retail markets
catering to them. Thereafter, these markets were visited to verify availability of various items
being consumed by the working class on a regular basis. After these studies, such a number
of markets were selected which represent purchases of larger segment of the working class of
the centre. The markets once selected are not changed in the life span of an index series to
maintain comparability of current prices with base prices. In each of the selected markets,
two shops were selected for each of the items retained in the price schedule so as to account 8
shop to shop variations of the markets. In addition, two more shops were selected and kept as
reserve so that prices could be collected from these shops in case of non-availability of any
item from selected shops. Keeping in view the earlier experience about frequent nonavailability of clothing varieties, it was decided to select retail mills shops wherever possible
for price collection of clothing items on the presumption that price trend revealed by these
shops will represent price trend of the clothing items of the centre. For collecting details
relating to ration items, four ration shops were selected from each market provided they were
available. While selecting the shops, factors like co-operation of the shopkeeper, regular
availability of the stocks, predominantly retail transactions was also kept in view. The shops
once selected are changed only in rare cases such as change of business by shopkeeper to
avoid spurious variations in prices.


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