The surplus foodgrain stocks has led to a reduced procurement by the Food Corporation of India (FCI). And this in turn has led to the softening of prices at the CPI-level, economists point out.

"Even the speculative action by farmers is not taking place this time even with reports of a not-too-good Rabi output," economist with the RPG Foundation Dr DH Pai Panandikar, told The Financial Express.

Moreover, the exorbitant fall in the inflation level as per the CPI for AL and RL is an exaggerated one due to the high weightage of food grains in the Consumer Price Index basket of commodities and low weightage to the fuel segment.

For the latest recorded period of November, the all-india consumer price index for agricultural labourers and rural labourers (base 1986-87=100) has increased by one point over the previous month for agricultural workers and 308 for rural labourers.

In the case of agricultural workers, the all india index has risen by one to five points in eight states and decreased by one to four points in ten states. It remained constant for two states. At the same time the index for rural labourers also increased by one to five points in nine states but decreased by one points to five points in nine states. No change was registered for three states.

Meghalaya continued to top the index with 348 points for agricultural labourers and 345 points for rural labourers, while Bihar figured at the bottom with the indices at 287 and 289 points, respectively.