Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Wheat Price Movement across Major Markets of Madhya Pradesh


Affiliations
1 Department of Agricultural Economics and Statistics, Dr.Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India
2 Department of Agricultural Economics and Statistics, Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akola (M.S.), India
3 Gokhale Institute of Politics and Economics, Pune (M.S.), India
     

   Subscribe/Renew Journal


This paper has examined the market integration of wheat in Madhya Pradesh. Both market arrivals and prices of wheat have depicted increasing trends in almost all the selected markets of Madhya Pradesh. The present study aimed to study price movement of Wheat i.e. seasonal variation, price volatility and co-integration among the major wheat markets in Madhya Pradesh. For study purpose the data related to monthly average prices and arrivals of Wheat were collected from major markets from different markets in States viz., Bhopal, Gwalior, Indore, and Ujjain for the period 2005- 2016. Moving average method used to study seasonal variation. The econometric tools like ADF test, Johansen's multiple co-integration test, Granger Causality Test and ARCH-GARCH model were used to arrive at conclusion. The results of study showed that the prices of wheat were higher in the months from March to August in all selected markets. The cyclical variation observed in the prices of Wheat in the 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 Wheat prices of each other. Bhopal, Gwalior, Indore and Ujjain recorded low price volatility in wheat prices.

Keywords

Wheat, Market Integration, Seasonality, Co-Integration.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Acharya, V., Engle, R. and Richardson, M. (2012). Capital shortfall: a new approach to rankings and regulating systemic risks. American Econ. Rev. Papers & Proceed., 102 (3) : 59–64.
  • Ajjan, N., Shivkumar, K.M., Murugananthi, D. and Padmavathi, P. (2009). Red Chillies. CARDS Commodity Series – 2, Tamil Nadu Agricultural University Coimbatore (T.N.) INDIA.
  • Bollerslev, T. (1986). Generalized Autoregressive Conditional Heteroscedasticity. J. Econometrics, 31 : 307–327.
  • Chandrakala, S. Kallimath (2009). Spatile and temporal behaviour of arrivals and prices of groundnut in Karnataka- An econometric analysis. MBA (Agribusiness) Thesis, University of Agricultural Sciences, Dharwad, KARNATAKA (INDIA).
  • Engle, R.F. (1982). Autoregressive conditional heteroscedasticity with estimates of the variance of United Kingdom Inflation. Econometrica, 50 (4): 987-1008.
  • Engle, R.F. and Granger, C.W.J. (1987). Cointegration and error correction: representation, estimation and testing. Econometrica, 55(2) : 251-276.
  • Gandhi, Vasant, P. and Koshy, Abraham (2006). Wheat marketing and its efficiency in India. Working Paper No.2006-09-03 (Indian Institute of Management).
  • Ghosh, Madhusudan (2011). Agricultural policy reforms and spatial integration of food grain markets in India. J. Econ.Development, 36(2): 15-36.
  • Granger, C.W.J. (1969). Investigating causal relations by econometric models and cross-spectral methods.
  • Econometrica, 37(3):424-438.
  • Johansen (1988). Statistical analysis of cointegration vectors. J. Econ. Dynamics & Control, 12(2-3): 231-254.
  • Lavanya, M. (2011). Price behaviour and marketing practices of turmeric in erode district ofTamilnadu. M.Sc. Thesis, Tamil Nadu Agricultural University, Coimbatore,T.N. (INDIA).
  • Mukim, Megha, Singh, Karan and Kanakaraj, A. (2009). Market integration, transaction costs and the Indian wheat market: A Systematic Study. Econ. & Politi. Weekly, 44 (22): 149-155.
  • Sekhar, C.S.C. (2003). Volatility of agricultural prices – an analysis of major international and domestic markets. Working Paper No. 103 (Indian Council for Research on International Economic Relations).

Abstract Views: 297

PDF Views: 0




  • Wheat Price Movement across Major Markets of Madhya Pradesh

Abstract Views: 297  |  PDF Views: 0

Authors

V. M. Bodade
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
Prema Borkar
Gokhale Institute of Politics and Economics, Pune (M.S.), India

Abstract


This paper has examined the market integration of wheat in Madhya Pradesh. Both market arrivals and prices of wheat have depicted increasing trends in almost all the selected markets of Madhya Pradesh. The present study aimed to study price movement of Wheat i.e. seasonal variation, price volatility and co-integration among the major wheat markets in Madhya Pradesh. For study purpose the data related to monthly average prices and arrivals of Wheat were collected from major markets from different markets in States viz., Bhopal, Gwalior, Indore, and Ujjain for the period 2005- 2016. Moving average method used to study seasonal variation. The econometric tools like ADF test, Johansen's multiple co-integration test, Granger Causality Test and ARCH-GARCH model were used to arrive at conclusion. The results of study showed that the prices of wheat were higher in the months from March to August in all selected markets. The cyclical variation observed in the prices of Wheat in the 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 Wheat prices of each other. Bhopal, Gwalior, Indore and Ujjain recorded low price volatility in wheat prices.

Keywords


Wheat, Market Integration, Seasonality, Co-Integration.

References