International Research Journal of Agricultural Economics and Statistics

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Price Stability of Soybean for Major Markets of India


Affiliations
1 Department of Agricultural Economics and Statistics, Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India
     

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Soybean is the leading oilseed produced globally. Huge fluctuations in prices of farm produce are observed during past few years. The present study aimed to study price movement of soybean i.e. seasonal variations, price volatility and co-integration among the major soybean markets in India. For study purpose the data related to monthly average prices of soybean were collected from major markets of different states viz., Akola and Latur (Maharashtra), Kota (Rajasthan), Bailhongal (Karnataka) and Nizamabad (Andhra Pradesh) for the period 2001-2013. Moving average method was used to study seasonal variations. The econometric tools like ADF test, Johansen's multiple cointegration test, granger causality test and ARCH-GARCH model were used to arrive at conclusions. The results of study showed that the prices of soybean were higher in the months from June to August in all selected markets. For all selected markets the prices series are free from the consequences of unit ischolar_main and were stationary at first difference. The selected markets show long run equilibrium relationship and co-integration between them. Most of the markets showed bidirectional influence on soybean prices of each other. Akola, Bailhongal, Kota and Latur market, recorded high price volatility in Soybean prices.

Keywords

ADF Test, ARCH-GARCH, Co-Integration, Granger Causality Test, Price Movement, Price Volatility, Seasonal Variation.
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  • Price Stability of Soybean for Major Markets of India

Abstract Views: 271  |  PDF Views: 1

Authors

A. S. Tingre
Department of Agricultural Economics and Statistics, Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India
A. A. Bhopale
Department of Agricultural Economics and Statistics, Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India
R. G. Deshmukh
Department of Agricultural Economics and Statistics, Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India

Abstract


Soybean is the leading oilseed produced globally. Huge fluctuations in prices of farm produce are observed during past few years. The present study aimed to study price movement of soybean i.e. seasonal variations, price volatility and co-integration among the major soybean markets in India. For study purpose the data related to monthly average prices of soybean were collected from major markets of different states viz., Akola and Latur (Maharashtra), Kota (Rajasthan), Bailhongal (Karnataka) and Nizamabad (Andhra Pradesh) for the period 2001-2013. Moving average method was used to study seasonal variations. The econometric tools like ADF test, Johansen's multiple cointegration test, granger causality test and ARCH-GARCH model were used to arrive at conclusions. The results of study showed that the prices of soybean were higher in the months from June to August in all selected markets. For all selected markets the prices series are free from the consequences of unit ischolar_main and were stationary at first difference. The selected markets show long run equilibrium relationship and co-integration between them. Most of the markets showed bidirectional influence on soybean prices of each other. Akola, Bailhongal, Kota and Latur market, recorded high price volatility in Soybean prices.

Keywords


ADF Test, ARCH-GARCH, Co-Integration, Granger Causality Test, Price Movement, Price Volatility, Seasonal Variation.

References