Intra-Year Price Instability Of Commercial Crops In India: Exploring The Underlying Dynamism
AbstractOne serious issue which creates far reaching repercussions in the commercial agriculture sector of India is the heightened instability in price both at the inter-year and intra-year level. An exploration of intra-year price instability, which is rarely addressed in the empirical studies, is attempted in this paper by selecting the case of four major commercial crops of India namely, Small Cardamom, Black Pepper, Natural Rubber and Tea. The study concludes that even in the scenario of integrated market setting price instability at the intra-year level is guided mainly by the seasonal character of supply. Hence, market offers high price to the farmers only when they have less to offer in the market and vice versa, which makes their income unstable in the short run, highlighting the need for stabilizing producersâ€™ returns.
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Bibliographic InfoArticle provided by Niğde University, Faculty of Economics and Administrative Sciences in its journal International Journal of Food and Agricultural Economics (IJFAEC).
Volume (Year): 2 (1)
Issue (Month): 1 ()
Intra-year instability; seasonality; co-efficient of variation; inter-temporal arbitraging; cyclical fluctuations; Crop Production/Industries; Production Economics;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eduardo Schwartz & James E. Smith, 2000. "Short-Term Variations and Long-Term Dynamics in Commodity Prices," Management Science, INFORMS, vol. 46(7), pages 893-911, July.
- Deaton, Angus & Laroque, Guy, 1996. "Competitive Storage and Commodity Price Dynamics," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 896-923, October.
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