Market integration of kinnow prices in Indian markets

Amit Guleria, Kuljeet Kaur and Jitender Sachdeva

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

Abstract: The present study analyse the weekly co-integration of kinnow prices among the major kinnow producing states of India from 2005–06 to 2019–20. Four important markets of country, one each from the selected states were chosen purposively on the basis of annual market arrivals of kinnow viz. Abohar, Hoshiarpur, Kangra and Sri Ganganagar along with two major national markets of orange i.e. Delhi and Bangalore were selected. To meet the objectives, various statistical tools like Johansen Methodology, Granger Causality test, Vector Error Correction Model etc. were employed to analyze the data. Correlation analysis showed that markets moved together and were well integrated; however, integration was stronger in the case of closely situated markets as compared to those markets having long distances between them. All the selected markets were found to be integrated and exhibited long-run relationship with each other. Hoshiarpur market was found to be a key market as it was influencing the prices of other selected markets of the country. When standard deviation shock was given to Hoshiarpur market, an immediate and a high response was noticed in all other markets. The variance decomposition revealed that Hoshiarpur was showing strong influence right from the short run period into the future. In order to fully integrate the market prices, study suggests for policy interventions in the form of strengthening of market intelligence services along with improvements in market infrastructure including storage, transportation and other physical facilities.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:399805

DOI: 10.22004/ag.econ.399805

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