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A study on integration of black gram markets in India

Author

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  • Murugananthi, D.
  • Rohini, A.
  • Sriramprabha, R.

Abstract

Market integration of agricultural products gained importance in developing countries due to its potential application to develop the national economy. The analysis of prices and market arrivals over time is important to know the fluctuations in them and it also helps to formulate appropriate ways and means for reducing price fluctuations of agricultural commodities. The present study was carried out by employing the integration of blackgram among major markets by employing tests, namely, Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration test, Granger causality test and Vector error correction method. The selections of the markets were based on the maximum quantity of arrivals of blackgram among the markets of Tamil Nadu state. The results of the study confirmed that markets are having long run equilibrium relationship and major markets of blackgram in Tamil Nadu state are integrated. All the three blackgram markets are highly co-integrated may be because of better marketing infrastructure, existence of cooperatives, easy flow of market information. High magnitude of speed of error correction indicates that markets are efficient in transmitting price signals.

Suggested Citation

  • Murugananthi, D. & Rohini, A. & Sriramprabha, R., 2023. "A study on integration of black gram markets in India," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 37(3).
    • Handle: RePEc:ags:injagm:399919
    DOI: 10.22004/ag.econ.399919
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