MARKET INTEGRATION AND PRICE VOLATILITY ACROSS SOYBEAN MARKETS IN CENTRAL INDIA

P.K. AWASTHI¹, APOORWA TOMAR²*, DEEPAK KORDE^3
1Department of Agricultural Economics & Farm Management, Jawaharlal Nehru Agricultural University, Adhartal, Jabalpur, 482004, Madhya Pradesh, India
²Department of Agricultural Economics & Farm Management, Jawaharlal Nehru Agricultural University, Adhartal, Jabalpur, 482004, Madhya Pradesh, India
³Department of Agricultural Economics & Farm Management, Jawaharlal Nehru Agricultural University, Adhartal, Jabalpur, 482004, Madhya Pradesh, India
* Corresponding Author : apoorwatomar931@gmail.com

Received : 09-06-2016     Accepted : 12-08-2016     Published : 27-10-2016
Volume : 8     Issue : 51       Pages : 2349 - 2352
Int J Agr Sci 8.51 (2016):2349-2352

Keywords : Time Series, Soybean price volatility, Market integration, Causality
Academic Editor : Dr Patricia M. Barcelo
Conflict of Interest : None declared
Acknowledgements/Funding : We acknowledge the financial support from the ICAR and NIAP, New Delhi for taking up policy study under the project Market Intelligence. The authors gratefully acknowledge the suggestions given by Dr. Raka Saxena (Sr. Scientist, NIAP) and Dr. Ranjit Paul (Scientist, IASRI, New Delhi) for improving the policy study.
Author Contribution : None declared

Madhya Pradesh being the leading soybean producing state of India and is also called the Soybean bowl in India. The aim of this paper is to assess the extent and integration among soybean markets i.e. Astha, Dewas, Indore, Mandsaur and Shajapur and to study price movement of soybean in Madhya Pradesh. The results of the Co-integration analysis showed that the prices of soybean were non-stationary and observed higher in the months from May to August in all the selected markets. Most of the selected markets showed bidirectional influence on soybean prices of each other and function as a satellite market and assimilate information. It is high time that all the agencies concerned with the sector to formulate strategies to bring back the prestigious position Madhya Pradesh had in India’s Soybean economy.