Market integration is a good proxy for measuring efficiency in the marketing system, whereby the underlying infrastructure is best put to use coupled with effective resource allocation. This way, the emerging price signals from the markets can be utilized to benefit both producers and consumers alike. The present study examines the performance of major groundnut domestic markets viz. Kurnool (Andhra Pradesh), Rajkot (Gujarat) and Villupuram (Tamil Nadu) in terms of market integration by using Engle- Granger bivariate co-integration test and Johansen multivariate co-integration test. The findings revealed the existence of long-run equilibrium between the markets in such a way that a 1% price rise in Kurnool market leads to 1.22% price rise in Villupuram market. Similarly, for every 1% price rise in Rajkot market, price in Villupuram market increases by 1.13%. Besides, causality test indicated the existence of feedback relationship between Kurnool and Rajkot market, Kurnool and Villupuram market and the presence of

unidirectional relationship between Rajkot to Villupuram market. The presence of short run disequilibria between market pairs was also captured using Vector Error Correction Model (VECM) and the findings revealed that almost 11 to 37% of the short-run fluctuations get corrected with a month. Overall, the results signified effective price transmission mechanism in the domestic markets and any further boost to the existing infrastructure will only help in improving both producer’s and consumer’s surpluses.