Income Simple Storage Service
403
5
INCOME AND PRICES
1. State Income: Advance Estimates of State Income 2009-10
During the year 2009-10, manufacturing, construction, railways, transport by other means, storage, communication, banking and insurance, real estate and business services are expected to scale above 5 per cent growth.
The advance estimates of Gross State Domestic Product (GSDP) at factor cost at constant prices (1999-2000) in the year 2009-10 is likely to attain a level of Rs.1,89,773 crore, as against the Quick Estimates of GSDP for the year 2008-09 of Rs.1,79,809 crore. The growth in GSDP during 2009-10 is estimated at 5.5 per cent as compared to the growth rate of 4.5 percent in 2008-09.
The ‘agriculture, forestry and fishing’ sector is likely to show a decline of 0.4 per cent in its GSDP during 2009-10. The production of food grains and oilseeds during the year 2009-10 is likely to decline by 5.5 per cent and 9.0 per cent respectively as compared to the previous year. The production of sugarcane is also likely to decline by 7.2 per cent during the year 200910 compared to previous year.
The advance estimates of Net State Domestic Product (NSDP) or Net State Income A comparative statement of Advanced of Karnataka at factor cost at constant (1999Estimates of GDP, GSDP of Karnataka and real 2000) prices in 2009-10 was Rs.1,68,022 crore growth rates for the year 2009-10 is given in as against Quick Estimates Rs.1,59,452 crore in Table 5.1. 2008-09, registering an increase of 5.4 percent. Table 5.1 Advance Estimates of GDP, GSDP of Karnataka and Real Growth Rates in 2009-10
Sector
At Current Prices
At Constant Prices
Real Growth Rates
(Rs. crore)
(Rs. crore)
(%)
Karnataka Karnataka
India
GSDP
India GDP (base
Karnataka
India
GSDP
GDP
(base year
year 2004-05)
GSDP
GDP
1999-2000)
Primary
50231
1118809
29729
756704
0.1
1.0
Secondary
86513
1494959
54036
1150616
7.5
8.1
Tertiary
161721
3177500
106008
2545744
6.2
8.7
Total
298465
5791268
189773
4453064
5.5
7.2
Source: 1. Karnataka: Directorate of Economics and Statistics, Government of Karnataka 2. Advance Estimates All India: Central Statistical Organisation, Government of India ECONOMIC SURVEY OF KARNATAKA 2009-10
404
Per Capita GSDP The per capita GSDP in real terms during the year 2009-10 at constant prices is likely to attain a level of Rs.32,411 as compared to the Quick Estimates for the year 2008-09 of Rs.31,041. The growth rate in per capita income is estimated at 4.4 per cent during the year 200910, as against the previous year’s estimate of 3.4 per cent. The per capita GSDP at current prices during the year 2009-10 is estimated at a level of Rs.50,974 as compared to Rs.46,731 during the year 2008-09. The growth rate in per capita income at current prices is estimated at 9.1 per cent during the year 2009-10, as against the previous year’s estimate of 11.5 per cent.
Quick Estimates of State Income, 2008-09 In absolute terms, the quick estimates of GSDP of Karnataka at factor cost at constant (1999-2000) prices in 2008-09 is estimated at Rs.1,79,809 crore as against Rs.1,71,984 crore
in 2007-08. At current prices, the GSDP in 2008-09 is estimated at Rs.2,70,699 crore as against Rs.2,40,062 crore in 2007-08. In 2008-09, the growth in GSDP of Karnataka at Constant (1999-2000) Prices was 4.5 per cent as against that of 12.6 per cent during the year 2007-08. The decrease of 0.4 percent growth in the primary sector was mainly due to fall in production of agriculture and forestry. The growth of 0.3 percent in the secondary sector in the year 2008-09 was mainly due to decline in growth in ‘Electricity, Gas and Water supply’ sector (-36.3 Percent). This is due to substantial increase in purchase of power compared to previous year. The 8.5 percent growth in the tertiary sector was powered largely by the performance in Communication (26.8percent), Public Administration (18.2 percent), Banking & Insurance (13.9 percent) and Other Services (6.0 percent). Sectoral growth rates of GSDP for 2007-08 and 2008-09 compared to previous year at constant (1999-2000) prices are given in Table 5.2.
Table No. 5.2 Sectoral growth rates of GSDP for Karnataka at Constant (1999-2000) Prices Sector
Percentage change over previous year 2007-08
2008-09
1
Agriculture
8.4
-1.1
2
Forestry and Logging
-6.2
-2.0
3
Fishing
3.2
22.8
4
Mining and Quarrying
18.9
2.7
Primary Sector
8.0
-0.4
5
Manufacturing
17.6
1.6
5.1
Registered
21.1
1.5
5.2
Un-registered
6.8
2.0
6
Construction
7.9
5.3
7
Electricity, Gas and Water supply
8.5
-36.3
Secondary Sector
13.8
0.3
Transport, Storage and Communication
13.8
17.6
8
ECONOMIC SURVEY OF KARNATAKA 2009-10
405
Sector
Percentage change over previous year 2007-08
2008-09
8.1
Railways
9.3
8.6
8.2
Transport by other means
7.7
9.8
8.3
Storage
-1.4
2.9
8.4
Communication
21.3
26.8
9
Trade, Hotels and Restaurants
18.0
1.0
10
Banking and Insurance Real estate, Ownership of Dwellings and Business services
14.3
13.9
8.3
5.6
12
Public Administration
12.5
18.2
13
Other services
13.4
6.0
Tertiary Sector
13.5
8.5
Total GSDP
12.6
4.5
11
Source: Directorate of Economics and Statistics, Government of Karnataka
Sectoral Composition of GSDP It is observed that the contribution of primary sector is decreasing from 17.3 percent to 16.5 percent to the GSDP and secondary sector is also decreasing from 29.2 percent to 28.0 percent from 2007-08 to 2008-09 at constant (1999-00) prices. There is an increasing trend in the tertiary sector from 53.5 percent to 55.5 percent in the same period. ‘Manufacturing’ contributes highest
with 18.0 percent in 2007-08 and 17.5 percent in 2008-09 to the GSDP followed by ‘Agriculture’ (including livestock and horticulture), ‘Trade, Hotels & Restaurants’ and ‘Real Estate, Ownership of Dwellings & Business Services’. Sectoral Composition of GSDP for 2007-08 and 2008-09 at constant (1999-2000) prices is given in Table 5.3
Table No. 5.3 Sectoral Composition of GSDP for Karnataka at Constant (1999-2000) Prices (Percent) Sl. No.
Sector
2007-08
2008-09
1
Agriculture
15.1
14.3
2
Forestry and Logging
0.9
0.8
3
Fishing
0.4
0.4
4
Mining and Quarrying
1.0
1.0
Primary Sector
17.3
16.5
Manufacturing
18.0
17.5
5.1
Registered
14.1
13.7
5.2
Un-registered
3.9
3.8
6
Construction
9.2
9.2
7
Electricity, Gas and Water supply
1.9
1.2
5
ECONOMIC SURVEY OF KARNATAKA 2009-10
406
Sl. No.
2007-08
2008-09
Secondary Sector
29.2
28.0
Transport, Storage and Communication
8.6
9.7
8.1
Railways
0.8
0.8
8.2
Transport by other means
3.8
4.0
8.3
Storage
0.0
0.0
8.4
Communication
4.0
4.9
9
Trade, Hotels and Restaurants
14.0
13.5
10
8.0
8.7
12.3
12.5
12
Banking and Insurance Real estate, Ownership of Dwellings and Business services Public Administration
3.8
4.3
13
Other services
6.8
6.9
Tertiary Sector
53.5
55.5
Total GSDP
100.0
100.0
8
11
Sector
Source: Directorate of Economics and Statistics, Government of Karnataka
The contribution of primary, secondary and tertiary sectors at current and constant (199900) prices to the GSDP of Karnataka compared to GDP of India during the year 2009-10 is depicted
in Table 5.4. The contribution of tertiary sector at current prices is almost similar both in GSDP of Karnataka and GDP of India.
Table No.5.4 Sectoral Percentage Share in 2009-10 Sectoral Percentage Share Sector
Primary
At Current Prices
At Constant Prices
Karnataka GSDP 16.83
India GDP 19.32
Karnataka GSDP 15.67
India GDP 16.99
28.99
25.81
28.47
25.84
54.18 100.00
54.87 100.00
55.86 100.00
57.17 100.00
Secondary Tertiary Total
Estimates of Net State Income and Per Capita Income At constant (1999-2000) prices, the quick estimates of Net State Income i.e., Net State Domestic Product (NSDP) of Karnataka at ECONOMIC SURVEY OF KARNATAKA 2009-10
factor cost in 2008-09 was at Rs.1,59,452 crore as against Rs.1,52,027 crore in 2007-08, registering an increase of 4.9 per cent. At current prices, the Net State Income in 2008-09 is estimated at Rs.2,40,473 crore as against Rs.2,11,663 crore in 2007-08 showing an increase of 13.6 per cent.
407
The Per Capita Income (Per Capita NSDP at factor cost) in real terms, at 1999-2000 prices, is estimated at Rs.27,526 for 2008-09 as against Rs.26,536 for 2007-08, an increase of 3.7 per cent.
Inter State Comparison The average annual growth rates of State
1999-2000 to 2007-08 and per capita income at current prices for 2007-08 for the major states in India is given Table 5.5. Among the fifteen major states, Karnataka stands in seventh position and is above ‘All India’ in terms of per capita income at current prices.
Income and Per Capita income during the period Table 5.5 Average annual growth rates of Net State Domestic Product and Per Capita Income in Current Prices for all India and major states of India Annual Average Growth Rates (%) during 1999-00 to 2007-08 Income
Per Capita Income
Per Capita income at Current prices 2007-08 (Rs)
Andhra Pradesh
11.4
10.2
35864
8
Assam
9.0
7.4
21991
12
Bihar
10.4
8.2
11135
15
Gujarat
13.3
11.4
45773
3
Haryana
14.1
11.8
58531
1
Karnataka
10.3
10.1
36945
7
Kerala
10.3
10.1
43104
6
Madhya Pradesh Maharashtra Orissa
6.8 10.3 16.3
4.7 8.7 10.4
18051 47051 23403
13 2 11
Punjab
8.5
6.6
44923
5
Rajasthan
11.6
7.0
23933
10
Tamil Nadu
10.8
9.9
45058
4
Uttar Pradesh
8.2
6.0
16060
14
West Bengal
9.08
8.5
31722
9
All India
11.2
9.3
33283
State
Rank
Source: 1. Karnataka: Directorate of Economics and Statistics, Government of Karnataka 2. All India and other States: Central Statistical Organisation, Government of India
Estimates of GSDP and NSDP at current and constant (1999-00) prices of Karnataka by industry of origin and its growth rates from 199900 and from 2002-03 to 2009-10 are presented in Appendix 5.1 to 5.4A.
2. District Income : Estimates of gross and net district income and their per capita income for the year 2007-08 at current prices for the 29 districts in the state are presented in Appendix 5.5A. ECONOMIC SURVEY OF KARNATAKA 2009-10
408
The District income estimates are prepared on provisional basis. The data base for working out the district estimates is available for primary sector only. In respect of secondary and tertiary sectors, the state level estimates are allocated to the districts with appropriate available indicators at the time of preparation of the estimates as per the guidelines of Central Statistical Organisation, Government of India. Because of the limitations, it may not be very useful to analyse the sector wise district estimates over two points of time as the estimates are not firmed up. However, a brief analysis of broad sector wise district estimates is given below. Bangalore Urban district stands first in district income as well as per capita income for the year 2007-08. Bangalore Urban district contributes 32.7 percent to GSDP at current prices and stands first followed by Belgaum district with 5.7 percent. Chamarajanagar district with 1.0 percent stands last in contribution to the GSDP. In the primary sector, the contribution is the highest in Belgaum district in 1999-00 and Bellary district in 2007-08, and the lowest is Gadag in 1999-00 and Bangalore (Rural) in 2007-08. This may be due to higher production of major irrigated crops like Paddy, Jowar, Sugarcane and Tobacco in Belgaum and higher production in mining and quarrying activity in Bellary. Bangalore Urban district tops in secondary and tertiary sectors due to high concentration of major industries and infrastructure facilities available in the district.
3. Prices : All India Wholesale Price Index (base: 1993-94=100) for the month of December 2009 stood at 246.5 (provisional), whereas it was 229.7 for the corresponding month of previous year. The annual rate of inflation based on ECONOMIC SURVEY OF KARNATAKA 2009-10
monthly wholesale price index was 7.31 percent in December 2009 (over December 2008) according to an official release of Ministry of Commerce and Industries, Government of India. The rate of inflation in the corresponding period of the previous year was 6.15 percent. All India Consumer Price Index Number for Industrial Workers on base 2001=100 moved to 169 points in December 2009 from 147 points during December 2008, according to Labour Bureau, Shimla. The point to point rate of inflation based on consumer price index for industrial workers for the month of December, 2009 is 14.97%, whereas it was 9.7% percent in the corresponding month of the previous year.
Trends in wholesale prices - all India The wholesale price indices of different groups/sub-groups in March and November during the years 2008 and 2009 have been compared. The percentage change in the indices are worked out and presented in Table 5.6. The index of primary articles group which includes food and non-food commodities has registered an increase of 13.06 percent in November 2009 as against 6.36 percent in the corresponding month of the previous year. The index of fuel, power, light & lubricants group has registered an increase of 7.46 percent in November 2009 whereas it was 1.90 percent in the corresponding month of the previous year. The index for manufactured products group has registered 5.23 percent increase in November 2009 as compared to an increase of 3.52 percent in the corresponding month of the previous year. Overall, the index for ‘all commodities’ rose by 7.54 percent in November 2009 as compared to an increase of 3.86 percent in November 2008.
409
Among the sub-groups, the index previous year. Only the index for edible oil has of sugar, Khandasari and Gur has registered shown a decreasing trend in both the years, in highest increase of 34.92 percent in November November 2009 it was (-)1.57 percent whereas it 2009, while it had registered an increase of 9.43 was (-) 6.68 percent in November 2008. percent during the corresponding period of the Table 5.6 Index numbers of wholesale prices in India 2008 and 2009 Base year: 1993-94=100 Item
2008
Weight March
Percentage change in November over March
2009
November March November
2008
2009
I. Primary Articles
22.02
235.9
250.9
248.2
280.6
6.36
13.06
a) Food articles of which
15.40
226.7
246.0
243.8
287.1
8.52
17.76
1. Cereals
4.41
219.2
233.6
244.9
265.3
6.57
8.33
2. Pulses
0.60
244.8
265.5
271.3
359.0
8.46
32.33
b) Non-food articles of which
6.14
227.6
235.7
225.6
240.1
3.56
6.43
i) Oilseeds
2.67
244.5
246.0
237.0
248.4
0.61
4.81
ii) Fibres
1.52
193.2
217.6
196.2
217.0
12.63
10.60
II. Fuel, power, light & lubricants
14.23
341.5
348.0
321.0
344.9
1.90
7.46
III. Manufactured Products of which
63.75
196.1
203.0
200.6
211.1
3.52
5.23
a) Edible oils
2.76
196.2
183.1
178.7
175.9
(-)6.68
(-)1.57
b) Sugar, khandasari & gur
3.93
154.8
169.4
189.6
255.8
9.43
34.92
c) Textiles
9.80
128.7
141.6
139.8
146.7
10.02
4.94
d) Paper and paper products
2.04
194.6
205.9
203.9
204.1
5.81
0.10
11.93
210.5
221.1
215.1
229.9
5.04
6.88
2.39
163.6
167.4
167.5
168.7
2.32
0.72
100.00
225.5
234.2
228.2
245.4
3.86
7.54
e) Chemical and chemical Products f) Rubber and plastic products All commodities
Source: Economic Adviser, Ministry of Commerce and Industry, Government of India, New Delhi.
Trends in wholesale prices in Karnataka In Karnataka, the wholesale price index is computed only for primary agricultural commodities, whereas at the all India level it is broad based as both agricultural and industrial products besides fuel, power, light and lubricants are also included. The wholesale price index of agricultural commodities (base 1981-82=100) in Karnataka moved to 789 points in November
2009 from 693 points in March 2009 registering an increase of 13.86 percent, whereas it was 21.36 percent in the corresponding period of previous year. The wholesale price indices of different agricultural commodity groups in March and November during the years 2008 and 2009 have been compared and the percentage change in the indices are worked out and presented in Table 5.7. ECONOMIC SURVEY OF KARNATAKA 2009-10
410
Table 5.7 Index numbers of wholesale prices of Agricultural Commodities in Karnataka - 2008 and 2009 Base year: 1981-82 = 100 Percentage variation 2008 2009 November over Sl. Commodity group Weight March No. March November March November
2008
2009
1
Cereals
29.89
588
711
842
925
20.92
9.86
2
Pulses
4.92
728
802
753
1341
10.16
78.09
3
Oilseeds
17.31
633
717
606
668
13.27
10.23
4
Sugar and gur
14.56
335
409
465
611
22.09
31.40
5
Fibres
9.64
463
659
516
511
42.33 (-)0.97
6
Condiments and spices
2.27
493
708
628
699
43.61
11.31
7
Miscellaneous *
21.41
699
814
781
828
16.46
6.02
693
789
21.35
13.86
All commodities
100.00
576
699
* Miscellaneous items include coffee, onion, potato, tobacco, tamarind, coconut and arecanut. Source: Directorate of Economics and Statistics, Bangalore
During the current year, the wholesale price indices of all the groups have shown an increasing trend. Pulses recorded a maximum rise of 78.09 percent during 2009 as against an increase of 10.16 percent during the corresponding period of the previous year. The index of Cereals increased by 9.86 percent during 2009 between March and November, while the increase was 20.92 percent during the same period of 2008. The index of Oil seeds rose by 10.23 in November 2009, while the increase was 13.27 percent during the same period of the previous year. The price index of Condiments and Spices raised by 11.31 percent in November 2009, while the same had increased by 43.61 percent during the year 2008.
ECONOMIC SURVEY OF KARNATAKA 2009-10
Trends in Karnataka
consumer
price
index-
The consumer price index measures the changes, over time, in the level of retail prices of a fixed set of goods and services consumed by an average family of a defined population group in a given area with reference to base year. Consumer price indices are being compiled for three different categories of population namely, industrial workers, agricultural labourers and rural labourers. The consumer price index for industrial workers is a tool to determine the dearness allowance of employees in both the public and private sectors. Consumer price index for industrial workers is being compiled for 16 centres in Karnataka. The consumer price indices for industrial workers for selected 16 centres in Karnataka
411
during March and November for the years 2008 and 2009 have been compared. The percentage change in the indices are worked out and presented in Table 5.8. The index of Karnataka has registered an increase of 9.91 percent in November 2009 as against 12.12 percent in the corresponding month of the previous year. In the current year, between March 2009 and
Sl. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
November 2009 among the 16 centres, Madikere reported the maximum increase of 16.67 percent whereas, Hassan recorded minimum increase of 7.67 percent. During corresponding period of the previous year, Hassan recorded maximum increase of 16.97 percent and Hubli-Dharwad recorded minimum increase of 8.45 percent.
Table 5.8 Consumer price indices for industrial workers - Karnataka 2008 and 2009 Percentage change 2008 2009 in November over Centres March 2008 2009 March November March November
Central Series (Base year : 2001=100) Bangalore 436 488 Belgaum 450 495 Hubli-Dharwad 426 462 Mysore 338 380 Madikere 392 447 State Series (Base year: 1987-88= 100) Bellary 355 403 Bhadravathi 355 408 Dandeli 379 422 Davanagere 368 424 Gulbarga 345 391 Harihar 337 379 Hassan 330 386 Mandya 364 412 Mangalore 342 383 Raichur 385 437 Tumkur 305 350 Karnataka 396 444
488 495 468 385 444
530 564 525 420 518
11.93 10.00 8.45 12.43 14.03
8.61 13.94 12.18 9.09 16.67
399 410 425 421 367 363 391 405 384 448 347 444
444 455 466 482 415 398 421 449 418 493 388 488
13.52 14.93 11.35 15.22 13.33 12.46 16.97 13.19 11.99 13.51 14.75 12.12
11.28 10.98 9.65 14.49 13.08 9.64 7.67 10.86 8.85 10.04 11.82 9.91
Source: Directorate of Economics and Statistics, Bangalore
The Consumer Price Index for agricultural labourers in Karnataka during the current year as at the end of November 2009 registered an increase of 17.5 percent as against 12.7 percent during the corresponding period
of the previous year. At the All-India level the index rose by 14.9 percent as against 8.7 percent during the previous year. The details are given in Table 5.9.
ECONOMIC SURVEY OF KARNATAKA 2009-10
412
Table 5.9 Consumer Price Index numbers for agricultural labourers – 2008 and 2009 (Base year: 1986-87=100) 2008
Item March
2009
November
March November
Percentage change in November over March 2008 2009
Karnataka i) Food
405
471
469
574
16.3
22.4
ii) General
409
461
463
544
12.7
17.5
i) Food
422
463
463
547
9.7
18.1
ii) General
423
460
463
532
8.7
14.9
All-India
Source: Labour Bureau, Shimla
4. Food Management :
Targeted Public Distribution System
The main objective of the Department of Food, Civil Supplies and Consumer Affairs is to provide food security and ensure availability of essential commodities at subsidized prices, particularly to the poorer section of the society as well as promoting and protecting the welfare of the consumers.
i) Anthyodaya Anna Yojana (AAY) Families of primitive tribes, the poorest of the poor, individuals of 60 years and above age who do not have families or fixed income and any type of help, widows, families suffering from chronic diseases/ physically handicapped are eligible to get ration cards under this scheme.
•
The target by GOI and the number of beneficiaries identified - 11,99,700
•
Annual Income Criteria :
•
Foodgrains entitlement to the beneficiaries: Foodgrains : 29 kg of rice at Rs.3.00 per kg (per month 6 kg of wheat Rs.2.00 per kg per household)
Rs.12,000/- & below in Rural areas Rs.17,000/- & below in Urban areas
Sugar
:
1-2 kg at Rs.13.50 per kg
Kerosene
:
Rural areas - 3 litres, Urban Areas - 5 to 6 litres Informal Rationing Areas - 6 litres Bangalore Informal Rationing area 7 litres Retail Issue Price- Rs.9.30 to Rs.10.10 per litre (Informal Rationing Area - population of 40,000 and above)
ECONOMIC SURVEY OF KARNATAKA 2009-10
413
ii) Akshaya (BPL) /EBPL Families of below poverty line, agricultural labourers, scheduled castes & scheduled tribes are eligible to get ration cards under this scheme. •
Annual Income Criteria
:
Rs. 12,000/- & below in Rural areas Rs.17,000/- & below in Urban areas
•
Foodgrains entitlement to the beneficiaries
:
4 kg of rice and 1 kg of wheat per unit with maximum of 23 kg of Rice/Wheat/Ragi
Rice
:
Rs.3.00 per Kg
Sugar
:
1-2 kg of sugar at Rs.13.50 per kg
Kerosene
:
Rural areas - 3 litres, Urban Areas - 5 to 6 litres Informal Rationing Areas - 6 litres Bangalore Informal Rationing area - 7 litres Retail Issue Price - Rs.9.30 to Rs.10.10 per litre
Below Poverty Line cards
3. Families who have Land line telephone (Except mobile phones)
Government of India has identified only 31.29 lakh families as Below Poverty Line(BPL) families. Government of Karnataka has identified 78.24 lakh BPL families through its survey. Thus Government of Karnataka has identified 46.95 lakh families in excess as BPL families. In order to identify truly left out BPL families the Government of Karnataka gave an opportunity to those families to get BPL cards through Nemmadi centre during January and February 2009 and issued 28.44 lakh temporary BPL cards. Government of Karnataka purchases foodgrains at Above Poverty Line price and distributes the same to the beneficiaries as per the scheme of Below Poverty Line. The additional subsidy is being borne by the State Government.
4. Families who have diesel and petrol vehicles (except Luna/TVS vehicles)
Families having any one or more of the following are not eligible to get benefits under the above two schemes;
5. Families who have borrowed the loan of more than Rs.1 lakh from scheduled bank or co-operative sectors 6. Families who have at least one running borewell 7. Any person in the family is drawing a salary of Rs.1000/-and above per month in Government/Non government /Private organizations 8. Income Tax payees 9. Those who are registered as contractors/ APMC traders/ dealers in seeds/ fertilizers etc. Overall living condition of the family shall be taken into consideration while determining the status of the family.
1. The families whose annual income is above Rs.12,000/- in rural areas and Rs.17,000/- in urban areas
In addition, in Urban areas the following is also applicable:
2. Families who have 3 hectares of dry land or its equivalent wet or Bhagayat land
1. Families who have 20’ X 30’ site or smaller site or the sites granted free ECONOMIC SURVEY OF KARNATAKA 2009-10
414
of cost by the Government under the housing schemes
Table 5.10 Allotment of foodgrains by Government of India (per month) (January 2010)
2. The families who have commercial establishments owned by them or on rent except those having petty business on the footpaths 3. Families who are receiving or paying the rent of Rs.2000/- per month for buildings used for residential and commercial purposes.
iii) Above Poverty Line (APL) The families who are not eligible to get ration cards under AAY and BPL scheme are eligible to get APL ration cards. Under this category Kerosene is issued to non-LPG cards. Existing Ration Cards as on 31-12-2009 1. Anthyodaya Anna Yojana (AAY) 11,99,700 2. Below Poverty Line (BPL) 66,39,468 3. BPL cards issued through Nemmadi Centres 23,16,997 4. Above Poverty Line (APL) 52,97,772 Total Ration Cards
Sl. No.
District
1,51,53,937
(in MTs) Category
Rice
Wheat
Ragi
AAY
34709
7282
0
BPL
55820
11712
11712
APL
54890
5156
0
• Kerosene 49,396 KL per month • Sugar 8,697 MTs per month Foodgrains and Kerosene are being distributed through a network of following wholesalers, retailers and fair price shops. Wholesale Nominees • Foodgrains Wholesale Nominees : 167 Karnataka Food & Civil Supplies Corporation Limited (KFCSC) 99 Co-operative Societies • Kerosene Wholesale Nominees : 341 Number of fair price shops Foodgrains KFCSC
199
Co-operative Societies
8,909
Individuals
11,268
Total Kerosene Retailers
20,376 25,922
Table 5.11 Mobile fair price depots Taluks covered under mobile fair price depots
Whether remote, inaccessible or hilly
1
Mysore
H.D.Kote, Nanjanagud Periyapatna, Hunsur
Hilly and remote
2
Dakshina Kannada
Belthangadi/Puttur
Hilly and remote
3
Kodagu
Madikere Somwarpet
Hilly, remote and farflung areas
4
Raichur
Devadurga Lingasuguar
Farflung and remote areas
5
Gulbarga
Gulbarga
Farflung and remote areas
ECONOMIC SURVEY OF KARNATAKA 2009-10
415
Allotment and Offtake of Commodities The allotment and offtake of Commodities under Targeted Public Distribution System for the years 2008-09 and 2009-10 (Upto November 2009) are as under: Table 5.12 2008-09 (MTs) Sl. No
1 2 3 4
Commodity
Rice Wheat Sugar Kerosene Oil (KLs)
Allocation
Offtake
169589.54 28512.72 13540.56 597032.977
166494.67 27934.30 5607.73 594674.154
Table 5.13 2009-10 (upto November -2009) (MTs) Sl. No.
1 2 3 4
Commodity
Rice Wheat Sugar Kerosene Oil (KLs)
Allocation
Offtake
135898.33 22668.21 6866.96 401956.925
131968.58 21800.55 4837.02 394315.193
Budget Allocation, Expenditure and Food Subsidy Under PDS foodgrains are distributed at subsidized rates. The budget allocation and expenditure figures towards subsidy and transportation charges for the last 3 years are as under: Table 5.14 (Rs. crore)
Sl. No.
Year
Budget Allocation
Expenditure
1 2
2007-08 2008-09
650 730
649.94 726.17
3
2009-10 (upto December 2009)
987
986.78
Food Subsidy The State Government is incurring around Rs. 830 crore for the year 2009-10 on Food Subsidy. The Category wise details of central issue price, the State retail issue price and rate of subsidy borne by the State Government per quintal are as follows. ECONOMIC SURVEY OF KARNATAKA 2009-10
416
Table 5.15 (Rate : Rs. per quintal)
Sl. No.
Particulars
AAY
BPL
EBPL
Rice
Wheat
Rice
Wheat
Rice
Wheat
1
Central Issue Price
300
200
565
415
830
610
2
State Subsidy
48
38
314
158
579
353
3
Wholesale Margin
19
15
20
20
20
20
4
Wholesale Issue Price
271
177
271
277
271
277
5
Retail Margin
29
23
29
23
29
23
6
Retail Issue Price (Per qtl)
300
200
300
300
300
300
7
Retail Issue Price (Per Kg)
3.00
2.00
3.00
3.00
3.00
3.00
Procurement Stocks and offtake
Karnataka State Marketing Federation are the sub-agents for Food Corporation of India under the Minimum Support Price of operation of coarse grains. Procurement details for the year 2007-08, 2008-09, 2009-10 is given below:
Food Corporation of India is the sole agency for procurement of coarse grains. Karnataka Food & Civil Supplies Corporation, Karnataka State Ware Housing Corporation and
Table 5.16 Procurement (in MTs) Sl. No
Year
Maize
Jowar
Bajra
Ragi
Levy Rice
1
2007-08
2432.000
816.486
0
10703.770
18491.100
2
2008-09
699230.817
-
0
12032.725
107107.000
3
2009-10
227.000
0
0
0
00
Monitoring and Public Distribution System
* Food Security Committee at District level
The public distribution system is being monitored in the following manner.
* Continuous supervision by the officers of the Department.
* Supervision
by
Panchayat
Raj
Institutions.
* Vigilance committees at Fair Price Shop(FPS) level. ECONOMIC SURVEY OF KARNATAKA 2009-10
* Aahara
Bhadrata
Samiti–
Grama
Panchayat
* Aahar adalat * Jana Spandana. i) Constitution of Vigilance Committee 7 member committee for each FPS, it consists of 5 women members among BPL or
417
AAY cardholders (1 SC, 1 ST, 2 BCM, and 1 General) Other 2 members - 1 Elected Gram Panchayat member. 1 Representative of local Women’s self help group.
ii) Constitution of Food Security Committee at District Level A three member committee has been constituted consisting of Secretary in-charge of the district as the chairman, Deputy Commissioner and CEO of Zilla Panchayat are the members.
iii) Constitution of Food Security Committee at Grama Panchayat Chairman of Social Justice Committee of Gram Panchayat will be the Chairman of this committee, Members: 1 SC, 2 ST, 1 woman Gram Panchayat member, Member Secretary is Gram Panchayat Secretary. Members of Food Security Committee with 2/3rd quorum can inspect the stocks and accounts of FPS along with the Food Inspector
Distribution
Computerisation of Public Distribution System and Points of Sale device. 1. The Computerisation of the public distribution system has been under taken as noted below •
Creation of a citizen database
•
Capturing digital photograph and biometrics of the family members above the age of 12 years.
•
Issue of permanent computerised ration cards
•
Computerising the whole process of Public Distribution System.
2. Fair Price Shop Point of Sale (POS) device A proposal regarding providing device to all the fair price shops to monitor the offtake information of the beneficiaries precisely with bio-metric finger print without giving any scope for the Fair Price Depot owners to indulge in malpractices is under progress.
To deliver the foodgrains to the doors of the distribution point the following system is being followed. In two Stages: 1st Stage – From Food Corporation of India to Taluk Level wholesale godown 2nd Stage – From wholesale godown to Rural Fair Price Shop •
Entire cost of transportation of foodgrains is borne by the Government
•
No door delivery in Urban Areas
•
Kerosene is also transported to the door steps of Fair Price Shop. ECONOMIC SURVEY OF KARNATAKA 2009-10
418
ECONOMIC SURVEY OF KARNATAKA 2009-10
5
INCOME AND PRICES
1. State Income: Advance Estimates of State Income 2009-10
During the year 2009-10, manufacturing, construction, railways, transport by other means, storage, communication, banking and insurance, real estate and business services are expected to scale above 5 per cent growth.
The advance estimates of Gross State Domestic Product (GSDP) at factor cost at constant prices (1999-2000) in the year 2009-10 is likely to attain a level of Rs.1,89,773 crore, as against the Quick Estimates of GSDP for the year 2008-09 of Rs.1,79,809 crore. The growth in GSDP during 2009-10 is estimated at 5.5 per cent as compared to the growth rate of 4.5 percent in 2008-09.
The ‘agriculture, forestry and fishing’ sector is likely to show a decline of 0.4 per cent in its GSDP during 2009-10. The production of food grains and oilseeds during the year 2009-10 is likely to decline by 5.5 per cent and 9.0 per cent respectively as compared to the previous year. The production of sugarcane is also likely to decline by 7.2 per cent during the year 200910 compared to previous year.
The advance estimates of Net State Domestic Product (NSDP) or Net State Income A comparative statement of Advanced of Karnataka at factor cost at constant (1999Estimates of GDP, GSDP of Karnataka and real 2000) prices in 2009-10 was Rs.1,68,022 crore growth rates for the year 2009-10 is given in as against Quick Estimates Rs.1,59,452 crore in Table 5.1. 2008-09, registering an increase of 5.4 percent. Table 5.1 Advance Estimates of GDP, GSDP of Karnataka and Real Growth Rates in 2009-10
Sector
At Current Prices
At Constant Prices
Real Growth Rates
(Rs. crore)
(Rs. crore)
(%)
Karnataka Karnataka
India
GSDP
India GDP (base
Karnataka
India
GSDP
GDP
(base year
year 2004-05)
GSDP
GDP
1999-2000)
Primary
50231
1118809
29729
756704
0.1
1.0
Secondary
86513
1494959
54036
1150616
7.5
8.1
Tertiary
161721
3177500
106008
2545744
6.2
8.7
Total
298465
5791268
189773
4453064
5.5
7.2
Source: 1. Karnataka: Directorate of Economics and Statistics, Government of Karnataka 2. Advance Estimates All India: Central Statistical Organisation, Government of India ECONOMIC SURVEY OF KARNATAKA 2009-10
404
Per Capita GSDP The per capita GSDP in real terms during the year 2009-10 at constant prices is likely to attain a level of Rs.32,411 as compared to the Quick Estimates for the year 2008-09 of Rs.31,041. The growth rate in per capita income is estimated at 4.4 per cent during the year 200910, as against the previous year’s estimate of 3.4 per cent. The per capita GSDP at current prices during the year 2009-10 is estimated at a level of Rs.50,974 as compared to Rs.46,731 during the year 2008-09. The growth rate in per capita income at current prices is estimated at 9.1 per cent during the year 2009-10, as against the previous year’s estimate of 11.5 per cent.
Quick Estimates of State Income, 2008-09 In absolute terms, the quick estimates of GSDP of Karnataka at factor cost at constant (1999-2000) prices in 2008-09 is estimated at Rs.1,79,809 crore as against Rs.1,71,984 crore
in 2007-08. At current prices, the GSDP in 2008-09 is estimated at Rs.2,70,699 crore as against Rs.2,40,062 crore in 2007-08. In 2008-09, the growth in GSDP of Karnataka at Constant (1999-2000) Prices was 4.5 per cent as against that of 12.6 per cent during the year 2007-08. The decrease of 0.4 percent growth in the primary sector was mainly due to fall in production of agriculture and forestry. The growth of 0.3 percent in the secondary sector in the year 2008-09 was mainly due to decline in growth in ‘Electricity, Gas and Water supply’ sector (-36.3 Percent). This is due to substantial increase in purchase of power compared to previous year. The 8.5 percent growth in the tertiary sector was powered largely by the performance in Communication (26.8percent), Public Administration (18.2 percent), Banking & Insurance (13.9 percent) and Other Services (6.0 percent). Sectoral growth rates of GSDP for 2007-08 and 2008-09 compared to previous year at constant (1999-2000) prices are given in Table 5.2.
Table No. 5.2 Sectoral growth rates of GSDP for Karnataka at Constant (1999-2000) Prices Sector
Percentage change over previous year 2007-08
2008-09
1
Agriculture
8.4
-1.1
2
Forestry and Logging
-6.2
-2.0
3
Fishing
3.2
22.8
4
Mining and Quarrying
18.9
2.7
Primary Sector
8.0
-0.4
5
Manufacturing
17.6
1.6
5.1
Registered
21.1
1.5
5.2
Un-registered
6.8
2.0
6
Construction
7.9
5.3
7
Electricity, Gas and Water supply
8.5
-36.3
Secondary Sector
13.8
0.3
Transport, Storage and Communication
13.8
17.6
8
ECONOMIC SURVEY OF KARNATAKA 2009-10
405
Sector
Percentage change over previous year 2007-08
2008-09
8.1
Railways
9.3
8.6
8.2
Transport by other means
7.7
9.8
8.3
Storage
-1.4
2.9
8.4
Communication
21.3
26.8
9
Trade, Hotels and Restaurants
18.0
1.0
10
Banking and Insurance Real estate, Ownership of Dwellings and Business services
14.3
13.9
8.3
5.6
12
Public Administration
12.5
18.2
13
Other services
13.4
6.0
Tertiary Sector
13.5
8.5
Total GSDP
12.6
4.5
11
Source: Directorate of Economics and Statistics, Government of Karnataka
Sectoral Composition of GSDP It is observed that the contribution of primary sector is decreasing from 17.3 percent to 16.5 percent to the GSDP and secondary sector is also decreasing from 29.2 percent to 28.0 percent from 2007-08 to 2008-09 at constant (1999-00) prices. There is an increasing trend in the tertiary sector from 53.5 percent to 55.5 percent in the same period. ‘Manufacturing’ contributes highest
with 18.0 percent in 2007-08 and 17.5 percent in 2008-09 to the GSDP followed by ‘Agriculture’ (including livestock and horticulture), ‘Trade, Hotels & Restaurants’ and ‘Real Estate, Ownership of Dwellings & Business Services’. Sectoral Composition of GSDP for 2007-08 and 2008-09 at constant (1999-2000) prices is given in Table 5.3
Table No. 5.3 Sectoral Composition of GSDP for Karnataka at Constant (1999-2000) Prices (Percent) Sl. No.
Sector
2007-08
2008-09
1
Agriculture
15.1
14.3
2
Forestry and Logging
0.9
0.8
3
Fishing
0.4
0.4
4
Mining and Quarrying
1.0
1.0
Primary Sector
17.3
16.5
Manufacturing
18.0
17.5
5.1
Registered
14.1
13.7
5.2
Un-registered
3.9
3.8
6
Construction
9.2
9.2
7
Electricity, Gas and Water supply
1.9
1.2
5
ECONOMIC SURVEY OF KARNATAKA 2009-10
406
Sl. No.
2007-08
2008-09
Secondary Sector
29.2
28.0
Transport, Storage and Communication
8.6
9.7
8.1
Railways
0.8
0.8
8.2
Transport by other means
3.8
4.0
8.3
Storage
0.0
0.0
8.4
Communication
4.0
4.9
9
Trade, Hotels and Restaurants
14.0
13.5
10
8.0
8.7
12.3
12.5
12
Banking and Insurance Real estate, Ownership of Dwellings and Business services Public Administration
3.8
4.3
13
Other services
6.8
6.9
Tertiary Sector
53.5
55.5
Total GSDP
100.0
100.0
8
11
Sector
Source: Directorate of Economics and Statistics, Government of Karnataka
The contribution of primary, secondary and tertiary sectors at current and constant (199900) prices to the GSDP of Karnataka compared to GDP of India during the year 2009-10 is depicted
in Table 5.4. The contribution of tertiary sector at current prices is almost similar both in GSDP of Karnataka and GDP of India.
Table No.5.4 Sectoral Percentage Share in 2009-10 Sectoral Percentage Share Sector
Primary
At Current Prices
At Constant Prices
Karnataka GSDP 16.83
India GDP 19.32
Karnataka GSDP 15.67
India GDP 16.99
28.99
25.81
28.47
25.84
54.18 100.00
54.87 100.00
55.86 100.00
57.17 100.00
Secondary Tertiary Total
Estimates of Net State Income and Per Capita Income At constant (1999-2000) prices, the quick estimates of Net State Income i.e., Net State Domestic Product (NSDP) of Karnataka at ECONOMIC SURVEY OF KARNATAKA 2009-10
factor cost in 2008-09 was at Rs.1,59,452 crore as against Rs.1,52,027 crore in 2007-08, registering an increase of 4.9 per cent. At current prices, the Net State Income in 2008-09 is estimated at Rs.2,40,473 crore as against Rs.2,11,663 crore in 2007-08 showing an increase of 13.6 per cent.
407
The Per Capita Income (Per Capita NSDP at factor cost) in real terms, at 1999-2000 prices, is estimated at Rs.27,526 for 2008-09 as against Rs.26,536 for 2007-08, an increase of 3.7 per cent.
Inter State Comparison The average annual growth rates of State
1999-2000 to 2007-08 and per capita income at current prices for 2007-08 for the major states in India is given Table 5.5. Among the fifteen major states, Karnataka stands in seventh position and is above ‘All India’ in terms of per capita income at current prices.
Income and Per Capita income during the period Table 5.5 Average annual growth rates of Net State Domestic Product and Per Capita Income in Current Prices for all India and major states of India Annual Average Growth Rates (%) during 1999-00 to 2007-08 Income
Per Capita Income
Per Capita income at Current prices 2007-08 (Rs)
Andhra Pradesh
11.4
10.2
35864
8
Assam
9.0
7.4
21991
12
Bihar
10.4
8.2
11135
15
Gujarat
13.3
11.4
45773
3
Haryana
14.1
11.8
58531
1
Karnataka
10.3
10.1
36945
7
Kerala
10.3
10.1
43104
6
Madhya Pradesh Maharashtra Orissa
6.8 10.3 16.3
4.7 8.7 10.4
18051 47051 23403
13 2 11
Punjab
8.5
6.6
44923
5
Rajasthan
11.6
7.0
23933
10
Tamil Nadu
10.8
9.9
45058
4
Uttar Pradesh
8.2
6.0
16060
14
West Bengal
9.08
8.5
31722
9
All India
11.2
9.3
33283
State
Rank
Source: 1. Karnataka: Directorate of Economics and Statistics, Government of Karnataka 2. All India and other States: Central Statistical Organisation, Government of India
Estimates of GSDP and NSDP at current and constant (1999-00) prices of Karnataka by industry of origin and its growth rates from 199900 and from 2002-03 to 2009-10 are presented in Appendix 5.1 to 5.4A.
2. District Income : Estimates of gross and net district income and their per capita income for the year 2007-08 at current prices for the 29 districts in the state are presented in Appendix 5.5A. ECONOMIC SURVEY OF KARNATAKA 2009-10
408
The District income estimates are prepared on provisional basis. The data base for working out the district estimates is available for primary sector only. In respect of secondary and tertiary sectors, the state level estimates are allocated to the districts with appropriate available indicators at the time of preparation of the estimates as per the guidelines of Central Statistical Organisation, Government of India. Because of the limitations, it may not be very useful to analyse the sector wise district estimates over two points of time as the estimates are not firmed up. However, a brief analysis of broad sector wise district estimates is given below. Bangalore Urban district stands first in district income as well as per capita income for the year 2007-08. Bangalore Urban district contributes 32.7 percent to GSDP at current prices and stands first followed by Belgaum district with 5.7 percent. Chamarajanagar district with 1.0 percent stands last in contribution to the GSDP. In the primary sector, the contribution is the highest in Belgaum district in 1999-00 and Bellary district in 2007-08, and the lowest is Gadag in 1999-00 and Bangalore (Rural) in 2007-08. This may be due to higher production of major irrigated crops like Paddy, Jowar, Sugarcane and Tobacco in Belgaum and higher production in mining and quarrying activity in Bellary. Bangalore Urban district tops in secondary and tertiary sectors due to high concentration of major industries and infrastructure facilities available in the district.
3. Prices : All India Wholesale Price Index (base: 1993-94=100) for the month of December 2009 stood at 246.5 (provisional), whereas it was 229.7 for the corresponding month of previous year. The annual rate of inflation based on ECONOMIC SURVEY OF KARNATAKA 2009-10
monthly wholesale price index was 7.31 percent in December 2009 (over December 2008) according to an official release of Ministry of Commerce and Industries, Government of India. The rate of inflation in the corresponding period of the previous year was 6.15 percent. All India Consumer Price Index Number for Industrial Workers on base 2001=100 moved to 169 points in December 2009 from 147 points during December 2008, according to Labour Bureau, Shimla. The point to point rate of inflation based on consumer price index for industrial workers for the month of December, 2009 is 14.97%, whereas it was 9.7% percent in the corresponding month of the previous year.
Trends in wholesale prices - all India The wholesale price indices of different groups/sub-groups in March and November during the years 2008 and 2009 have been compared. The percentage change in the indices are worked out and presented in Table 5.6. The index of primary articles group which includes food and non-food commodities has registered an increase of 13.06 percent in November 2009 as against 6.36 percent in the corresponding month of the previous year. The index of fuel, power, light & lubricants group has registered an increase of 7.46 percent in November 2009 whereas it was 1.90 percent in the corresponding month of the previous year. The index for manufactured products group has registered 5.23 percent increase in November 2009 as compared to an increase of 3.52 percent in the corresponding month of the previous year. Overall, the index for ‘all commodities’ rose by 7.54 percent in November 2009 as compared to an increase of 3.86 percent in November 2008.
409
Among the sub-groups, the index previous year. Only the index for edible oil has of sugar, Khandasari and Gur has registered shown a decreasing trend in both the years, in highest increase of 34.92 percent in November November 2009 it was (-)1.57 percent whereas it 2009, while it had registered an increase of 9.43 was (-) 6.68 percent in November 2008. percent during the corresponding period of the Table 5.6 Index numbers of wholesale prices in India 2008 and 2009 Base year: 1993-94=100 Item
2008
Weight March
Percentage change in November over March
2009
November March November
2008
2009
I. Primary Articles
22.02
235.9
250.9
248.2
280.6
6.36
13.06
a) Food articles of which
15.40
226.7
246.0
243.8
287.1
8.52
17.76
1. Cereals
4.41
219.2
233.6
244.9
265.3
6.57
8.33
2. Pulses
0.60
244.8
265.5
271.3
359.0
8.46
32.33
b) Non-food articles of which
6.14
227.6
235.7
225.6
240.1
3.56
6.43
i) Oilseeds
2.67
244.5
246.0
237.0
248.4
0.61
4.81
ii) Fibres
1.52
193.2
217.6
196.2
217.0
12.63
10.60
II. Fuel, power, light & lubricants
14.23
341.5
348.0
321.0
344.9
1.90
7.46
III. Manufactured Products of which
63.75
196.1
203.0
200.6
211.1
3.52
5.23
a) Edible oils
2.76
196.2
183.1
178.7
175.9
(-)6.68
(-)1.57
b) Sugar, khandasari & gur
3.93
154.8
169.4
189.6
255.8
9.43
34.92
c) Textiles
9.80
128.7
141.6
139.8
146.7
10.02
4.94
d) Paper and paper products
2.04
194.6
205.9
203.9
204.1
5.81
0.10
11.93
210.5
221.1
215.1
229.9
5.04
6.88
2.39
163.6
167.4
167.5
168.7
2.32
0.72
100.00
225.5
234.2
228.2
245.4
3.86
7.54
e) Chemical and chemical Products f) Rubber and plastic products All commodities
Source: Economic Adviser, Ministry of Commerce and Industry, Government of India, New Delhi.
Trends in wholesale prices in Karnataka In Karnataka, the wholesale price index is computed only for primary agricultural commodities, whereas at the all India level it is broad based as both agricultural and industrial products besides fuel, power, light and lubricants are also included. The wholesale price index of agricultural commodities (base 1981-82=100) in Karnataka moved to 789 points in November
2009 from 693 points in March 2009 registering an increase of 13.86 percent, whereas it was 21.36 percent in the corresponding period of previous year. The wholesale price indices of different agricultural commodity groups in March and November during the years 2008 and 2009 have been compared and the percentage change in the indices are worked out and presented in Table 5.7. ECONOMIC SURVEY OF KARNATAKA 2009-10
410
Table 5.7 Index numbers of wholesale prices of Agricultural Commodities in Karnataka - 2008 and 2009 Base year: 1981-82 = 100 Percentage variation 2008 2009 November over Sl. Commodity group Weight March No. March November March November
2008
2009
1
Cereals
29.89
588
711
842
925
20.92
9.86
2
Pulses
4.92
728
802
753
1341
10.16
78.09
3
Oilseeds
17.31
633
717
606
668
13.27
10.23
4
Sugar and gur
14.56
335
409
465
611
22.09
31.40
5
Fibres
9.64
463
659
516
511
42.33 (-)0.97
6
Condiments and spices
2.27
493
708
628
699
43.61
11.31
7
Miscellaneous *
21.41
699
814
781
828
16.46
6.02
693
789
21.35
13.86
All commodities
100.00
576
699
* Miscellaneous items include coffee, onion, potato, tobacco, tamarind, coconut and arecanut. Source: Directorate of Economics and Statistics, Bangalore
During the current year, the wholesale price indices of all the groups have shown an increasing trend. Pulses recorded a maximum rise of 78.09 percent during 2009 as against an increase of 10.16 percent during the corresponding period of the previous year. The index of Cereals increased by 9.86 percent during 2009 between March and November, while the increase was 20.92 percent during the same period of 2008. The index of Oil seeds rose by 10.23 in November 2009, while the increase was 13.27 percent during the same period of the previous year. The price index of Condiments and Spices raised by 11.31 percent in November 2009, while the same had increased by 43.61 percent during the year 2008.
ECONOMIC SURVEY OF KARNATAKA 2009-10
Trends in Karnataka
consumer
price
index-
The consumer price index measures the changes, over time, in the level of retail prices of a fixed set of goods and services consumed by an average family of a defined population group in a given area with reference to base year. Consumer price indices are being compiled for three different categories of population namely, industrial workers, agricultural labourers and rural labourers. The consumer price index for industrial workers is a tool to determine the dearness allowance of employees in both the public and private sectors. Consumer price index for industrial workers is being compiled for 16 centres in Karnataka. The consumer price indices for industrial workers for selected 16 centres in Karnataka
411
during March and November for the years 2008 and 2009 have been compared. The percentage change in the indices are worked out and presented in Table 5.8. The index of Karnataka has registered an increase of 9.91 percent in November 2009 as against 12.12 percent in the corresponding month of the previous year. In the current year, between March 2009 and
Sl. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
November 2009 among the 16 centres, Madikere reported the maximum increase of 16.67 percent whereas, Hassan recorded minimum increase of 7.67 percent. During corresponding period of the previous year, Hassan recorded maximum increase of 16.97 percent and Hubli-Dharwad recorded minimum increase of 8.45 percent.
Table 5.8 Consumer price indices for industrial workers - Karnataka 2008 and 2009 Percentage change 2008 2009 in November over Centres March 2008 2009 March November March November
Central Series (Base year : 2001=100) Bangalore 436 488 Belgaum 450 495 Hubli-Dharwad 426 462 Mysore 338 380 Madikere 392 447 State Series (Base year: 1987-88= 100) Bellary 355 403 Bhadravathi 355 408 Dandeli 379 422 Davanagere 368 424 Gulbarga 345 391 Harihar 337 379 Hassan 330 386 Mandya 364 412 Mangalore 342 383 Raichur 385 437 Tumkur 305 350 Karnataka 396 444
488 495 468 385 444
530 564 525 420 518
11.93 10.00 8.45 12.43 14.03
8.61 13.94 12.18 9.09 16.67
399 410 425 421 367 363 391 405 384 448 347 444
444 455 466 482 415 398 421 449 418 493 388 488
13.52 14.93 11.35 15.22 13.33 12.46 16.97 13.19 11.99 13.51 14.75 12.12
11.28 10.98 9.65 14.49 13.08 9.64 7.67 10.86 8.85 10.04 11.82 9.91
Source: Directorate of Economics and Statistics, Bangalore
The Consumer Price Index for agricultural labourers in Karnataka during the current year as at the end of November 2009 registered an increase of 17.5 percent as against 12.7 percent during the corresponding period
of the previous year. At the All-India level the index rose by 14.9 percent as against 8.7 percent during the previous year. The details are given in Table 5.9.
ECONOMIC SURVEY OF KARNATAKA 2009-10
412
Table 5.9 Consumer Price Index numbers for agricultural labourers – 2008 and 2009 (Base year: 1986-87=100) 2008
Item March
2009
November
March November
Percentage change in November over March 2008 2009
Karnataka i) Food
405
471
469
574
16.3
22.4
ii) General
409
461
463
544
12.7
17.5
i) Food
422
463
463
547
9.7
18.1
ii) General
423
460
463
532
8.7
14.9
All-India
Source: Labour Bureau, Shimla
4. Food Management :
Targeted Public Distribution System
The main objective of the Department of Food, Civil Supplies and Consumer Affairs is to provide food security and ensure availability of essential commodities at subsidized prices, particularly to the poorer section of the society as well as promoting and protecting the welfare of the consumers.
i) Anthyodaya Anna Yojana (AAY) Families of primitive tribes, the poorest of the poor, individuals of 60 years and above age who do not have families or fixed income and any type of help, widows, families suffering from chronic diseases/ physically handicapped are eligible to get ration cards under this scheme.
•
The target by GOI and the number of beneficiaries identified - 11,99,700
•
Annual Income Criteria :
•
Foodgrains entitlement to the beneficiaries: Foodgrains : 29 kg of rice at Rs.3.00 per kg (per month 6 kg of wheat Rs.2.00 per kg per household)
Rs.12,000/- & below in Rural areas Rs.17,000/- & below in Urban areas
Sugar
:
1-2 kg at Rs.13.50 per kg
Kerosene
:
Rural areas - 3 litres, Urban Areas - 5 to 6 litres Informal Rationing Areas - 6 litres Bangalore Informal Rationing area 7 litres Retail Issue Price- Rs.9.30 to Rs.10.10 per litre (Informal Rationing Area - population of 40,000 and above)
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413
ii) Akshaya (BPL) /EBPL Families of below poverty line, agricultural labourers, scheduled castes & scheduled tribes are eligible to get ration cards under this scheme. •
Annual Income Criteria
:
Rs. 12,000/- & below in Rural areas Rs.17,000/- & below in Urban areas
•
Foodgrains entitlement to the beneficiaries
:
4 kg of rice and 1 kg of wheat per unit with maximum of 23 kg of Rice/Wheat/Ragi
Rice
:
Rs.3.00 per Kg
Sugar
:
1-2 kg of sugar at Rs.13.50 per kg
Kerosene
:
Rural areas - 3 litres, Urban Areas - 5 to 6 litres Informal Rationing Areas - 6 litres Bangalore Informal Rationing area - 7 litres Retail Issue Price - Rs.9.30 to Rs.10.10 per litre
Below Poverty Line cards
3. Families who have Land line telephone (Except mobile phones)
Government of India has identified only 31.29 lakh families as Below Poverty Line(BPL) families. Government of Karnataka has identified 78.24 lakh BPL families through its survey. Thus Government of Karnataka has identified 46.95 lakh families in excess as BPL families. In order to identify truly left out BPL families the Government of Karnataka gave an opportunity to those families to get BPL cards through Nemmadi centre during January and February 2009 and issued 28.44 lakh temporary BPL cards. Government of Karnataka purchases foodgrains at Above Poverty Line price and distributes the same to the beneficiaries as per the scheme of Below Poverty Line. The additional subsidy is being borne by the State Government.
4. Families who have diesel and petrol vehicles (except Luna/TVS vehicles)
Families having any one or more of the following are not eligible to get benefits under the above two schemes;
5. Families who have borrowed the loan of more than Rs.1 lakh from scheduled bank or co-operative sectors 6. Families who have at least one running borewell 7. Any person in the family is drawing a salary of Rs.1000/-and above per month in Government/Non government /Private organizations 8. Income Tax payees 9. Those who are registered as contractors/ APMC traders/ dealers in seeds/ fertilizers etc. Overall living condition of the family shall be taken into consideration while determining the status of the family.
1. The families whose annual income is above Rs.12,000/- in rural areas and Rs.17,000/- in urban areas
In addition, in Urban areas the following is also applicable:
2. Families who have 3 hectares of dry land or its equivalent wet or Bhagayat land
1. Families who have 20’ X 30’ site or smaller site or the sites granted free ECONOMIC SURVEY OF KARNATAKA 2009-10
414
of cost by the Government under the housing schemes
Table 5.10 Allotment of foodgrains by Government of India (per month) (January 2010)
2. The families who have commercial establishments owned by them or on rent except those having petty business on the footpaths 3. Families who are receiving or paying the rent of Rs.2000/- per month for buildings used for residential and commercial purposes.
iii) Above Poverty Line (APL) The families who are not eligible to get ration cards under AAY and BPL scheme are eligible to get APL ration cards. Under this category Kerosene is issued to non-LPG cards. Existing Ration Cards as on 31-12-2009 1. Anthyodaya Anna Yojana (AAY) 11,99,700 2. Below Poverty Line (BPL) 66,39,468 3. BPL cards issued through Nemmadi Centres 23,16,997 4. Above Poverty Line (APL) 52,97,772 Total Ration Cards
Sl. No.
District
1,51,53,937
(in MTs) Category
Rice
Wheat
Ragi
AAY
34709
7282
0
BPL
55820
11712
11712
APL
54890
5156
0
• Kerosene 49,396 KL per month • Sugar 8,697 MTs per month Foodgrains and Kerosene are being distributed through a network of following wholesalers, retailers and fair price shops. Wholesale Nominees • Foodgrains Wholesale Nominees : 167 Karnataka Food & Civil Supplies Corporation Limited (KFCSC) 99 Co-operative Societies • Kerosene Wholesale Nominees : 341 Number of fair price shops Foodgrains KFCSC
199
Co-operative Societies
8,909
Individuals
11,268
Total Kerosene Retailers
20,376 25,922
Table 5.11 Mobile fair price depots Taluks covered under mobile fair price depots
Whether remote, inaccessible or hilly
1
Mysore
H.D.Kote, Nanjanagud Periyapatna, Hunsur
Hilly and remote
2
Dakshina Kannada
Belthangadi/Puttur
Hilly and remote
3
Kodagu
Madikere Somwarpet
Hilly, remote and farflung areas
4
Raichur
Devadurga Lingasuguar
Farflung and remote areas
5
Gulbarga
Gulbarga
Farflung and remote areas
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415
Allotment and Offtake of Commodities The allotment and offtake of Commodities under Targeted Public Distribution System for the years 2008-09 and 2009-10 (Upto November 2009) are as under: Table 5.12 2008-09 (MTs) Sl. No
1 2 3 4
Commodity
Rice Wheat Sugar Kerosene Oil (KLs)
Allocation
Offtake
169589.54 28512.72 13540.56 597032.977
166494.67 27934.30 5607.73 594674.154
Table 5.13 2009-10 (upto November -2009) (MTs) Sl. No.
1 2 3 4
Commodity
Rice Wheat Sugar Kerosene Oil (KLs)
Allocation
Offtake
135898.33 22668.21 6866.96 401956.925
131968.58 21800.55 4837.02 394315.193
Budget Allocation, Expenditure and Food Subsidy Under PDS foodgrains are distributed at subsidized rates. The budget allocation and expenditure figures towards subsidy and transportation charges for the last 3 years are as under: Table 5.14 (Rs. crore)
Sl. No.
Year
Budget Allocation
Expenditure
1 2
2007-08 2008-09
650 730
649.94 726.17
3
2009-10 (upto December 2009)
987
986.78
Food Subsidy The State Government is incurring around Rs. 830 crore for the year 2009-10 on Food Subsidy. The Category wise details of central issue price, the State retail issue price and rate of subsidy borne by the State Government per quintal are as follows. ECONOMIC SURVEY OF KARNATAKA 2009-10
416
Table 5.15 (Rate : Rs. per quintal)
Sl. No.
Particulars
AAY
BPL
EBPL
Rice
Wheat
Rice
Wheat
Rice
Wheat
1
Central Issue Price
300
200
565
415
830
610
2
State Subsidy
48
38
314
158
579
353
3
Wholesale Margin
19
15
20
20
20
20
4
Wholesale Issue Price
271
177
271
277
271
277
5
Retail Margin
29
23
29
23
29
23
6
Retail Issue Price (Per qtl)
300
200
300
300
300
300
7
Retail Issue Price (Per Kg)
3.00
2.00
3.00
3.00
3.00
3.00
Procurement Stocks and offtake
Karnataka State Marketing Federation are the sub-agents for Food Corporation of India under the Minimum Support Price of operation of coarse grains. Procurement details for the year 2007-08, 2008-09, 2009-10 is given below:
Food Corporation of India is the sole agency for procurement of coarse grains. Karnataka Food & Civil Supplies Corporation, Karnataka State Ware Housing Corporation and
Table 5.16 Procurement (in MTs) Sl. No
Year
Maize
Jowar
Bajra
Ragi
Levy Rice
1
2007-08
2432.000
816.486
0
10703.770
18491.100
2
2008-09
699230.817
-
0
12032.725
107107.000
3
2009-10
227.000
0
0
0
00
Monitoring and Public Distribution System
* Food Security Committee at District level
The public distribution system is being monitored in the following manner.
* Continuous supervision by the officers of the Department.
* Supervision
by
Panchayat
Raj
Institutions.
* Vigilance committees at Fair Price Shop(FPS) level. ECONOMIC SURVEY OF KARNATAKA 2009-10
* Aahara
Bhadrata
Samiti–
Grama
Panchayat
* Aahar adalat * Jana Spandana. i) Constitution of Vigilance Committee 7 member committee for each FPS, it consists of 5 women members among BPL or
417
AAY cardholders (1 SC, 1 ST, 2 BCM, and 1 General) Other 2 members - 1 Elected Gram Panchayat member. 1 Representative of local Women’s self help group.
ii) Constitution of Food Security Committee at District Level A three member committee has been constituted consisting of Secretary in-charge of the district as the chairman, Deputy Commissioner and CEO of Zilla Panchayat are the members.
iii) Constitution of Food Security Committee at Grama Panchayat Chairman of Social Justice Committee of Gram Panchayat will be the Chairman of this committee, Members: 1 SC, 2 ST, 1 woman Gram Panchayat member, Member Secretary is Gram Panchayat Secretary. Members of Food Security Committee with 2/3rd quorum can inspect the stocks and accounts of FPS along with the Food Inspector
Distribution
Computerisation of Public Distribution System and Points of Sale device. 1. The Computerisation of the public distribution system has been under taken as noted below •
Creation of a citizen database
•
Capturing digital photograph and biometrics of the family members above the age of 12 years.
•
Issue of permanent computerised ration cards
•
Computerising the whole process of Public Distribution System.
2. Fair Price Shop Point of Sale (POS) device A proposal regarding providing device to all the fair price shops to monitor the offtake information of the beneficiaries precisely with bio-metric finger print without giving any scope for the Fair Price Depot owners to indulge in malpractices is under progress.
To deliver the foodgrains to the doors of the distribution point the following system is being followed. In two Stages: 1st Stage – From Food Corporation of India to Taluk Level wholesale godown 2nd Stage – From wholesale godown to Rural Fair Price Shop •
Entire cost of transportation of foodgrains is borne by the Government
•
No door delivery in Urban Areas
•
Kerosene is also transported to the door steps of Fair Price Shop. ECONOMIC SURVEY OF KARNATAKA 2009-10
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ECONOMIC SURVEY OF KARNATAKA 2009-10
