Market Integration in Indian Agriculture

Jha, Raghbendra; Murthy, K. V. Bhanu; Nagarajan, Hari K.; Seth, Ashok

doi:10.1007/s001830050011

Cited by 20 publications

(18 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, many food market studies [e.g. studies of wheat markets by Jha et al, (1997), rice markets by Ghosh (2000) and rice, potato and mustard markets by Palaskas and Harris-White (1993)] reported that food markets are cointegrated to a large extent, but the present study has revealed that, even though chickpea markets are cointegrated, the extent of cointegration is very limited; i.e., only three markets out of twelve markets remain cointegrated in the long run and, in many cases, the adjustment process in short term deviations from equilibrium may not lead to a long term equilibrium of the system. The major terminal markets in large consuming and import/export locations (Delhi, Rohtak and Dohad) are exogenous to the system, and are thus important in price formation in Indian chickpea markets.…”

Section: Resultsmentioning

confidence: 99%

“…However, work in this field in India has been very limited (Jha et al, 1997;Blyn, 1973;Ghosh, 2000;Deb, 2004;Reddy and Reddy, 2011). Most of the studies pertaining to major food grains like rice and wheat and no study has yet been focused particularly on widely spread and thinly traded food grains such as pulses in India.…”

Section: Introductionmentioning

confidence: 99%

“…Most of the studies pertaining to major food grains like rice and wheat and no study has yet been focused particularly on widely spread and thinly traded food grains such as pulses in India. Jha et al, (1997) investigated rice and wheat market integration in India, carrying out binary and multivariate cointegration tests. Applying these methods to the monthly wholesale prices of rice and wheat for the period from 1980 to 1990, they observed that all pairs of prices of rice as well as of wheat are cointegrated.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Market integration of grain legumes in India: the case of the chickpea market

Reddy

2014

SAARC J Agric

View full text Add to dashboard Cite

The present study assesses the market integration of chickpea in India from 2003 to 2010. The month end prices of chickpea for twelve markets in north India were used for the study. Out of twelve markets, only three markets are cointegrated, indicating weak integration of chickpea markets in India. However, the terminal markets located in major consuming (Delhi) and export/import locations (Dohad/Gujarat) clearly play an important role in price discovery and influences other domestic markets indicating the relevance of the import prices and large consuming centres on local market prices. Error correction terms indicate that the adjustment process from short-term disequilibrium in prices to long run price equilibrium is very slow. Overall, there is evidence of weak cointegration in the chickpea markets in North India and imports and major consuming centres are playing an important role in price discovery in domestic chickpea markets.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Market integration of grain legumes in India: the case of the chickpea market

Reddy

2014

SAARC J Agric

View full text Add to dashboard Cite

show abstract

“…EMH largely assumes that sub-markets within a market, where they exist, are integrated. There exists an approach in literature, in the realm of commodity spot markets which concentrates on testing for market integration in the short and long run (Ravallion 1986;Golletti et al 1995;Jha and Bhanu Murthy et al 1997). We find that money market, including its sub-markets, lends itself better for adopting such an approach.…”

Section: Introductionmentioning

confidence: 91%

Financial Liberalisation

Murthy

Goel

2011

Review of Market Integration

Self Cite

View full text Add to dashboard Cite

Short-run market integration cannot be subsumed within the long run, since the money market is essentially for enabling the liquidity needs, through short term credit instruments. Through Ravallion (1986) tests we have examined short-run market integration of Money Market in India, including testing for the 'central market hypothesis'. We find that the sub-markets are not segmented. Therefore, it can be expected that information flows lead to price adjustments across sub-markets of the money market. Second, arbitrage possibilities do not exist. On the whole we conclude that the money market in India displays short-run market integration.

show abstract

“…n markets. If markets are integrated (as in India, Jha et al, 1997) Equation (6) will have to be estimated as a non-linear system of equations.…”

Section: I Th E M O D E Lmentioning

confidence: 99%