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Price dynamics and market integration of wheat markets in Uttar Pradesh

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  • Katoch, Sonali
  • Singh, Rakesh

Abstract

As improving market integration is one of the major objectives of recent marketing reforms viz. GST and e-NAM implemented by government, the study attempts to analyse the extent of market integration of wheat crop from 2006 to 2020 in Uttar Pradesh. For analysis, price behaviour is obtained from CAGR, which is found positive for all markets. CDVI is used to obtain instability, which is found maximum in Prayagraj and minimum in Kanpur. The prices of wheat start increasing from December every year and reaches peak in February. After establishing that price series are stationary and integrated, the co-integration test for the long run relationship among the price series reveals that selected markets are well integrated. The speed of adjustment is found highest in Prayagraj (40%) and Aligarh (33%). It is suggested that enhancing storage facility may reduce the seasonal fluctuation in wheat market.

Suggested Citation

  • Katoch, Sonali & Singh, Rakesh, 2015. "Price dynamics and market integration of wheat markets in Uttar Pradesh," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 35(1).
    • Handle: RePEc:ags:injagm:399719
    DOI: 10.22004/ag.econ.399719
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