Co-integration for onion market in Tamil Nadu, India

V. Karthick, R. Sangeetha and V. Saravanakumar

Indian Journal of Agricultural Marketing, 2022, vol. 36, issue 1

Abstract: This study is aimed to examine onion market integration in Tamil Nadu. Fluctuations in market arrivals and consistent demand largely contribute to the price instability and market integration of onion market. The onion markets viz., Maharashtra, Madhya Pradesh, Karnataka, and Tamil Nadu were chosen for this study. Monthly farm gate price of onion dominated markets for the period from 2005 to 2019 was used for this study. The Autoregressive Distributed Lag Model (ARDL) was used to estimate co integration (long run equilibrium) between these markets since, the onion price for Tamil Nadu market was non-stationary and the prices for other markets were stationary in level form. The results from this study conclude that long run equilibrium existed among the onion markets in Tamil Nadu, Madhya Pradesh, Karnataka, and Maharashtra, but the pace of adjustment of the equilibrium level was very slow in the long run. The main determinant of shocks in the Tamil Nadu onion market was a shift in the price of onion in the Maharashtra market.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:399801

DOI: 10.22004/ag.econ.399801

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