SPATIAL INTEGRATION OF WHOLESALE PRICES OF MAJOR POTATO MARKETS OF UTTARAKHAND

MEENAKSHI LATWAL¹*, ANIL KUMAR^2
1Department of Agricultural Economics, College of Agriculture, G. B. Pant University of Agriculture and Technology, Pant Nagar, Uttarakhand, 263145, India
²Department of Agricultural Economics, College of Agriculture, G. B. Pant University of Agriculture and Technology, Pant Nagar, Uttarakhand, 263145, India
* Corresponding Author : latwalmeenakshi2@gmail.com

Received : 21-04-2019     Accepted : 13-08-2019     Published : 15-08-2019
Volume : 11     Issue : 15       Pages : 8837 - 8840
Int J Agr Sci 11.15 (2019):8837-8840

Keywords : Spatial integration, Potato prices, Potato markets, Uttarakhand
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Agricultural Economics, College of Agriculture, G. B. Pant University of Agriculture and Technology, Pant Nagar, Uttarakhand, 263145, India
Author Contribution : All authors equally contributed

The study was undertaken to discern the nature and extent of spatial integration of wholesale prices of major potato markets of Uttarakhand using the weekly wholesale price data from 2015 to 2017. The Johannes’s co-integration test was used to test for long run market integration. Dynamics of short-run price responses were examined by using Vector Error Correction Model (VECM). The wholesale markets of potato were shown to be integrated. However, the price transmission in short-run was insignificant. The wholesale markets of potato found to be segmented with the other markets of Uttarakhand, which signifies that the longer the distance, the lesser the integration could be observed. So, it may be concluded that while the prices are tied together in long-run, they drift apart in the short-run because of paucity of availability of information and lack of dissemination of available information. The co-integration analysis among the major potato markets of Uttarakhand reveals that the significant short-run association was missing in Rudrapur market so there is a weak association between the markets in short-run.

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