Price Discovery in Some Primary Commodity Markets in India

Raushan Kumar
Additional contact information
Raushan Kumar: Department of Economics, University of Delhi

No 276, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: With the onset of wide-ranging economic reforms in India in 1991, agents have been exposed to increased price risk in commodity markets. Futures markets are one important instrument for reducing price risk, and in this study we focus on the price discovery role of futures markets. Employing daily price data for nine crops for the period 2009-2014, we find strong causation running from futures to spot prices. Since spot prices impinge on the storage and cropping pattern decisions of farmers, our results imply that providing information on futures price to farmers on a daily basis would enable them to take more efficient decisions in the present.

Keywords: Futures markets; spot markets; primary commodities (search for similar items in EconPapers)
JEL-codes: G13 Q02 Q18 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2017-06
New Economics Papers: this item is included in nep-agr and nep-mkt
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.cdedse.org/pdf/work276.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cde:cdewps:276

Ordering information: This working paper can be ordered from
http://www.cdedse.org/

The price is free.

Access Statistics for this paper

More papers in Working papers from Centre for Development Economics, Delhi School of Economics Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Sanjeev Sharma ().