IDEAS home Printed from https://ideas.repec.org/a/sae/manlab/v48y2023i4p478-496.html
   My bibliography  Save this article

Price Discovery in Agricultural Commodities Markets for India: A Case of Cotton

Author

Listed:
  • Rishita Kabi
  • Pradiptarathi Panda
  • Latha Chari

Abstract

This study applies vector autoregression to capture the relationships among inflation, cotton spot and futures price. Further, the autoregressive distributed lag model has been applied to capture the impact of rainfall on the cotton spot and futures price. The result of this study reveals that cotton spot price positively impacts cotton futures, while rainfall negatively impacts the price of cotton futures. There is no impact of inflation on cotton spot and futures markets. Due to the sensitivity of crops to rainfall, the monsoon plays a vital role in price discovery in the agricultural market. Similarly, inflation is another significant issue linked to agricultural prices. Further, any movement in futures prices driven by the speculative activity of traders in the commodity derivatives does not contribute to changes in the spot prices.

Suggested Citation

  • Rishita Kabi & Pradiptarathi Panda & Latha Chari, 2023. "Price Discovery in Agricultural Commodities Markets for India: A Case of Cotton," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(4), pages 478-496, November.
    • Handle: RePEc:sae:manlab:v:48:y:2023:i:4:p:478-496
    DOI: 10.1177/0258042X231158408
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0258042X231158408
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0258042X231158408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:manlab:v:48:y:2023:i:4:p:478-496. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.xlri.ac.in/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.