Question

Q. With reference to the Abhijit Sen committee, it was set up in relation to which of the following?

• A.
  Wholesale Price Index (WPI)
• B.
  Consumer Price Index (CPI)
• C.
  Producer Price Index (PPI)
• D.
  Index of Industrial Production (IIP)

Answer 1

The correct option is C

Producer Price Index (PPI)
Explanation:

The Abhijit Sen Committee is working on the Producers Price Index (PPI). PPI does not take into account indirect taxes, transport costs and profit margins of traders because this index is calculated at the producer’s level before the commodity reaches the market so that price rise if any can be arrested at the producers level before its impact reaches the consumers.