Price Discovery in Some Primary Commodity Markets in India

Raushan Kumar ()
Additional contact information
Raushan Kumar: Department of Economics, Delhi School of Economics

Economics Bulletin, 2017, vol. 37, issue 3, 1817-1829

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 would enable them to take more efficient decisions in the present.

Keywords: Futures markets; spot markets; primary commodities; developing country (search for similar items in EconPapers)
JEL-codes: G1 Q0 (search for similar items in EconPapers)
Date: 2017-08-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I3-P165.pdf (application/pdf)

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:ebl:ecbull:eb-17-00592

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().