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Co-integration and causality analysis in major potato markets of West Bengal

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  • Katoch, Sonali
  • Singh, Rakesh

Abstract

The study attempts to analyze the extent of market integration and causality relationship in major potato markets of West Bengal state. Price and arrival data from Jan, 2006 to Aug, 2021 of six major potato producing districts namely Burdwan, Coochbehar, Jalpaiguri, Hooghly, Nadia and Bankura are selected. In analysis, seasonality indices reveals existence of significant variation in crop. Instability is measured through CV and CDVI, which reveals high instability. ADF unit root test gives stationarity of data at level. Johnson co-integration test for the long run relationship among the price series reveals that selected markets are well integrated. The causal relationship between the price series is approached through Granger causality technique, and Burdwan market is found to be the price leader. The marketing mechanism in Burdwan should be so robust that the fluctuations in other markets can also be restraint.

Suggested Citation

  • Katoch, Sonali & Singh, Rakesh, 2022. "Co-integration and causality analysis in major potato markets of West Bengal," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 36(1).
    • Handle: RePEc:ags:injagm:399810
    DOI: 10.22004/ag.econ.399810
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