Onion Market Dynamics: Insights into Price Trends and Integration Patterns Across Major Markets in India

The present study investigates the price behaviour, structural breaks, price cointegration and price transmission in major onion markets of India in light of the COVID-19 pandemic. The findings of this study revealed that seasonal price indices were highest in November for southern region markets. A major structural break in the selected markets was noted in August or September 2019, showing that the structural break did not align with the COVID-19 pandemic lockdown period as anticipated. Further, the study found 11 cointegration equations at 1% significance level by trace test, indicating long-term cointegration in onion markets despite their geographical segmentation. Some markets exhi­bited bi-directional or uni-directional influences of prices on other selected markets, with Delhi showing the highest number of bi-directional influences. Additionally, the impulse response function revealed that the Delhi price shock had a positive effect up to seven periods, which later became a follower.