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Market integration of selected tomato markets in southern India

Author

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  • Gogulan, G.
  • Velavan, C.
  • Sivakumar, S.D.
  • Selvam, S.

Abstract

This study was conducted to assess the integration of tomato markets in Southern India. Madanapalle (Andhra Pradesh), Kolar (Karnataka) and Dharmapuri, Coimbatore and Palani markets in Tamil Nadu were selected for the study. Daily wholesale prices of tomato were collected for the selected markets from 2015–2017 for the analysis. Unit root test, Johansen test and Vector Error Correction Model (VECM) were used to study cointegration. The results revealed that the selected markets were integrated with one and two day lagged price. Madanapalle market was the lead market and other markets followed this market. Five possible routes of price transmission identified among the markets were 1. Madanappalli and Dharmapuri, 2. Madanapalle and Kolar, 3. Madanapalle, Dharmapuri, Coimbatore and Palani, 4. Madanapalle, Coimbatore and Palani, 5. Madanapalle and Palani. Further, short run adjustments of any shock in the price of Dharmapuri market was adjusted within six minutes which was shortest among the selected markets.

Suggested Citation

  • Gogulan, G. & Velavan, C. & Sivakumar, S.D. & Selvam, S., 2019. "Market integration of selected tomato markets in southern India," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 33(2).
    • Handle: RePEc:ags:injagm:399636
    DOI: 10.22004/ag.econ.399636
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