Year: 2021 | Month: December | Volume 66 | Issue 4
Spatial and Temporal Relationship between Coriander Prices
Coriander is among the major seed spices grown in the country. Madhya Pradesh followed by Rajasthan and Gujarat together accounts for 85-90 percent of total coriander production in the country. Present study investigated the dynamics of spatial (both intra-state and inter-state) as well as temporal relationshipbetween coriander prices in India. The Kota and Baran markets from Rajasthan were selected to study the intra-state whereas Guna market from Madhya Pradesh and Kota market from Rajasthan was selected to examine the inter-state price relationship. The temporal analysis was conducted between futures (with delivery centre at Kota) and spot (Kota) price series of coriander. The monthly coriander prices from August 2008 to July 2020 were collected and analyzed for the study. The Johansen cointegration test and Vector Error Correction Mechanism (VECM) were used to investigate the long and short run relationship whereas Granger causality was used to examine the direction of causality between two price series. The study confirmed spatial as well as temporal correlation between coriander prices which can be further explored in many ways to achieve and strengthen the marketing efficiency.
- Coriander markets in the country are cointegrated spatially as well as temporally.
- Coriander markets in major growing states (Madhya Pradesh and Rajasthan) are integrated with each other. Coriander spot prices are significantly influenced by its future prices.
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
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