Price integration of Nendran banana markets in Kerala
Abstract
The study has investigated market integration across three major wholesale Nendran banana markets, viz., Kozhikode, Ernakulam, and Thiruvananthapuram of Kerala. Co-integration analysis of monthly wholesale Nendran banana prices in the above markets were carried out by adopting Johansen’s multivariate cointegration approach after confirming the stationarity of price series using Augmented Dickey Fuller (ADF) test. The study has confirmed the presence of cointegration, implying the price association among the markets. To get the additional evidence as to whether and in which direction price transmission is occurring between the market pairs, Granger causality test was used, which confirmed Thiruvananthapuram to be the price determining market. The existence of unidirectional causality from Kozhikode market to Ernakulam market and from Thiruvananthapuram market to Kozhikode and Ernakulam markets was proved. Bidirectional causality was absent between all the pairs. The study concluded that Nendran banana farmers were earning comparable prices at a particular point of time and market intervention or policy in one market would impact the price in other markets. The major implication of the study is the need for capacity building in market intelligence and designing of a network of agricultural wholesale markets for Nendran banana across the country to enhance market integration and better price transmission among them.Downloads
Published
How to Cite
Issue
Section
License
Copyright © 2001-11 Kerala Agricultural University. Some rights reserved. This journal and the individual contributions contained in it are protected under copyright by the Kerala Agricultural University and the following terms and conditions apply to their use; Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Permission may be sought directly from the Editor, Journal of Tropical Agriculture, Department of Agronomy, College of Horticulture,, Kerala Agricultural University, KAU PO, Thrissur 680 656, Kerala, India. (Phone: +91-487-2438325; Fax +91-487-2371040; E-mail: editor.jta@kau.in. Derivative works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institution. Permission of the Publisher is required for resale or distribution outside the institution. Permission of the Publisher is required for all other derivative works, including compilations and translations. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products, liability, negligence, or otherwise, or from any use of any methods, products, instructions or ideas contained in the material herein.