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GS3 · Inflation

How should free PDS grain enter the CPI?

1 min readFood Security & PDSInflation
Battle IAS current affairs title card: How should free PDS grain enter the CPI? (GS3 · Inflation, 4 October 2025)
Asked by UPSCPrelims 20201 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

What happened

  • MoSPI released Discussion Paper 2.0 on treating free PDS items in CPI compilation, as part of the CPI base revision [PIB].
  • Free foodgrain distribution started on 1 January 2023, covering 75% of the rural and 50% of the urban population [PIB].

Background

  • MoSPI consulted RBI, the IMF and UN bodies; a first note came out in December 2024 [PIB].

Why it matters

  • If free grain is priced at zero, measured inflation falls. The method chosen will change the headline number RBI targets.

How to use this in Mains

GS-III Indian economy: growth, development and macro stability

  1. As per PIB (2025-10-04): moSPI released Discussion Paper 2.0 on treating free PDS items in CPI compilation, as part of the CPI base revision.
  2. If free grain is priced at zero, measured inflation falls. The method chosen will change the headline number RBI targets.
Quotable data point

Free foodgrain distribution started on 1 January 2023, covering 75% of the rural and 50% of the urban population.

PIB: MoSPI: Discussion paper 2.0 on free PDS items in CPI, 4 Oct 2025

Exam angle

UPSC

Prelims: CPI methodology.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Free foodgrain distribution began on

Answer (b) & explanation

PIB.

Practice · UPSC

Coverage of free grains (rural/urban)

Answer (a) & explanation

PIB.

Practice · UPSC

Discussion paper number

Answer (b) & explanation

PIB.

Go deeper

ExplainerSelf-Reliance in Pulses and Edible Oils: Mission for Aatmanirbharta in Pulses (2025-31), National Mission on Edible Oils (Oilseeds and Oil Palm), Import Dependence and the Way Forward (UPSC Notes + PYQs)ExplainerMinimum Support Price (MSP): How It Is Fixed, CACP, A2+FL and C2 Costs, Procurement, PM-AASHA and the Legal Guarantee Debate (UPSC Notes + PYQs)

Official source: PIB: MoSPI: Discussion paper 2.0 on free PDS items in CPI, 4 Oct 2025

facts from cited sources only; faculty review pending