IDEAS home Printed from https://ideas.repec.org/a/ags/ajaees/367868.html
   My bibliography  Save this article

Decoding Global Tea Trade: Unveiling Market Dynamics in India

Author

Listed:
  • Murugananthi, D.
  • Priyadharshini, M.
  • Prabha, S. Aruna

Abstract

Tea is the second important beverage consumed Worldwide after water. Domestic consumption of tea in India had increased from 346 M kg in 1980 to 1135 M kg in 2020. The price of tea in global market keeps wavering due to demand and supply dynamics, labour problem, market competition, pandemic and so on. Tea is one of the Internationally traded commodity and price is the key variable which links the markets globally. If countries are linked by trade in a free market regime, global demand and supply shocks will have an equal impact on the domestic and international prices. Hence, the present study analysed the price integration of tea among the three different markets globally. The major tea markets taken for the study are Kenya (Mombasa), North India (Kolkata) and South India (Coonoor - CTTR) markets. To study the price variation seasonal decomposition was used. ADF test was used to assess the stationarity, Johansen cointegration and VECM model was used to analyse the long term cointegration among the markets. Granger causality was used to assess the direction of flow of information across markets. All the price series are first difference stationary. The study revealed that the Kolkata market played a lead role in determining the prices. The presence of one co- integration equation among auction prices of tea markets and indicated the presence of long run equilibrium relationship among the auction markets.

Suggested Citation

  • Murugananthi, D. & Priyadharshini, M. & Prabha, S. Aruna, 2024. "Decoding Global Tea Trade: Unveiling Market Dynamics in India," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 41(12), pages 1-6.
    • Handle: RePEc:ags:ajaees:367868
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/367868/files/Prabha41122024AJAEES112455.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    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:ags:ajaees:367868. 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: AgEcon Search (email available below). General contact details of provider: https://journalajaees.com/index.php/AJAEES/index .

    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.