Asymmetric price transmission in perishable crops value chain: A NARDL approach

Purushottam Sharma, Dinesh Chand Meena and Md. Ejaz Anwer

Agribusiness, 2025, vol. 41, issue 2, 588-611

Abstract: Policymakers and economists envisage effective price transmission across markets or stakeholders in supply chains as a vital contributor to market efficiency. The paper explores the vertical price transmission in the perishables supply chain in India using weekly data on farm, wholesale and retail prices collected from main production and consumption markets. We estimate the asymmetries in price transmission using the nonlinear autoregressive distributed lags model and found the asymmetry in both magnitude and speed in the case of wholesale–retail chain of Onion and Potato, asymmetry in magnitude in wholesale–retail chain of Tomato, and asymmetry in speed in farm–wholesale chain of Potato. The results of asymmetric coefficient, long‐run elasticity of price transmission, speed of adjustment and implied half‐life of disequilibrium indicated that farm–wholesale chain is more efficient than wholesale–retail chain. Further, market chains of Onion and Tomato are more efficient than Potato chains. The magnitude of the adjustment was found to be larger for the long‐run positive shock in wholesale–retail market chain of Onion, Potato and Tomato, and it concluded that retailers enjoy an advantage over wholesalers as well as farmers. We draw interesting policy considerations for the perishables sector [EconLit Citations: Q11, Q13, C32].

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/agr.21904

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:wly:agribz:v:41:y:2025:i:2:p:588-611

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().