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Market integration of selected red chilli markets in India

Author

Listed:
  • Sudha, R.
  • Amman, M.
  • Muralidharan, C.
  • Somasundaram, E.

Abstract

Red Chilli is an important commercial crop of India. The present study was undertaken to examine integration and price transmission of major markets of red chilli wholesale prices during 2012 January to December 2022. Major red chilli producing and arrival states f India viz., Andhra Pradesh Bihar (Khagaria), Karnataka (Bangalore), Maharashtra (Mumbai), Maharashtra (Nagpur), Tamil Nadu (Virdhunagar), Uttar Pradesh (Kanpur), West Bengal (Kolkata) and Delhi. The wholesale monthly price data of red chilies were collected from AGMARKNET. Johansen Cointegration test revealed that, long run equilibrium and also implies strength and stability of wholesale price linkages between selected markets. Granger causality test reveals very significant short-run causal relationships between the selected markets. Hyderabad market have bi-directional relationship with Nagpur and West Bengal markets and most of the markets have uni-directional relationship with each other.

Suggested Citation

  • Sudha, R. & Amman, M. & Muralidharan, C. & Somasundaram, E., 2023. "Market integration of selected red chilli markets in India," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 37(3).
    • Handle: RePEc:ags:injagm:399921
    DOI: 10.22004/ag.econ.399921
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