MARKET INTEGRATION OF MAJOR SUNFLOWER OIL MARKETS OF INDIA

D.K. PANT¹*, M.L. SHARMA^2
1Department of Agricultural Economics, College of Agriculture, Govind Ballabh Pant University of Agriculture and Technology, Pantnagar, 263145, Uttarakhand, India
²Department of Agricultural Economics, College of Agriculture, Govind Ballabh Pant University of Agriculture and Technology, Pantnagar, 263145, Uttarakhand, India
* Corresponding Author : deveshpant43677@gmail.com

Received : 05-07-2022     Accepted : 27-07-2022     Published : 30-07-2022
Volume : 14     Issue : 7       Pages : 11481 - 11483
Int J Agr Sci 14.7 (2022):11481-11483

Keywords : Market Integration, Sunflower oil, Johansen’s co-integration, Granger Causality, Market Intelligence
Academic Editor : S. M. Chavan
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Agricultural Economics, College of Agriculture, G.B. Pant University of Agriculture & Technology, Pantnagar, 263145, Uttarakhand, India
Author Contribution : All authors equally contributed

Indian ecosystem has a diversity of agro-ecological conditions such that oilseeds occupy an important place after food crops and account for about 14 per cent of overall cultivated area of all agricultural production. But still India fulfils 60 per cent of vegetable oil requirements through imports. To reduce supply gap in oils, marketing efficiency should be enhanced through market integration between the oilseed and oil markets. This study attempted to investigate the market integration between 5 major sunflower oil markets of India viz., Bengaluru, Vijayawada, Mumbai, Chennai and Kolkata. For the analysis 10 years monthly price data was collected for the time period from January 2010 to December 2019. It was observed from the Johansen’s co-integration analysis that there exists a long-run relationship between the selected markets. And pair-wise Granger causality test also indicated the direction of causality and observed that there exist bidirectional as well as unidirectional causality between the markets. But no relationship also existed between Mumbai and Bengaluru and also between Mumbai and Vijayawada. This calls for urgent policy intervention with respect to market intelligence to encourage all the market functionaries to adopt rational decisions accordingly

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