Price Transmission, Volatility and Discovery of Gram in Some Selected Markets in Rajathan State, India

Price Transmission, Volatility and Discovery of Gram in Some Selected Markets in Rajathan State, India



Sadiq, M S., Singh, I.P., Suleiman Aminu, Umar, S.M., Grema, I.J., Usman, B.I., Isah M.A., Lawal A. T



Market integration in many agricultural commodities had been extensively
studied for the insight it provides into the functioning of such
markets, thus giving valuable information about the dynamics of market
adjustment, and whether there exist market imperfection, which may
justify government intervention. This study empirically investigated
price transmission, volatility and discovery of gram across four
wholesale gram markets, viz. Jaipur, Kishangarh, Chomu and Malpura in
Rajasthan state of India using Johansen’s multivariate cointegration
approach, VECM, Granger causality tests, GARCH, EGARCH and ARIMA.
Monthly wholesale gram price data spanning from January 2011 to December
2015 sourced from AGMARKNET were used. Multivariate cointegration
showed that all the selected gram markets were cointegarted in the
long-run, meaning long-run price association among these markets. The
degree of market integration observed is consistent with the view that
Rajasthan state gram markets are quite competitive; thus, provide little
justification for extensive and costly government intervention designed
to enhance market efficiency through improve competitiveness.
Therefore, in order to sustain the present system of market integration,
there is need to evolve mechanism that will generate market information
and market intelligence which would serve as a platform for guiding
farmers in marketing their produce. 



http://ijeab.com/upload_document/issue_files/1467813979-9%20IJEAB-JUN-2016-1-Price%20Transmission,%20Volatility%20and%20Discovery%20of%20Gram%20in%20Some%20Selected%20Markets%20in%20Rajathan%20State,%20India.pdf



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