Year: 2024 | Month: March | Volume 69 | Issue 1

An Assessment of Price Transmission in Major Pulses Markets in Karnataka

Jainuddin S.M. Amrutha T Joshi Manojkumar G. and Stephan Raj
DOI:10.46852/0424-2513.2.2024.4

Abstract:

The purpose of present study was to estimate the price transmission processes of pulses markets in Karnataka state. For that 30 years secondary data on the prices of pulses especially redgram and bengalgram were collected from 1989-90 to 2018-19 and analyzed by using techniques such as CAGR, Johansen Co-integration approach, VAR Model, Granger Causality test to fulfil the objectives. The study concluded that the results of both trace and maximum eigen-value tests indicated that the selected major pulses market such as Kalaburagi, Bidar, Bellary, Raichur and Koppal are cointegrated with each other in the long run and indicated that these markets are efficiently running and they are competitive in nature. The study showed that market pairs in redgram such as Bidar-Kalaburagi, and Raichur-Bidar are exhibiting bidirectional causality, whereas market pairs such as Kalaburagi-Raichur, Koppal-Kalaburagi,Bidar-Bellary, Koppal-Bidar and Koppal-Raichur are expressed unidirectional causality. In case of bengalgram, markets pairs such as Bidar-Kalaburagi, Kalaburagi-Raichur, Bellary-Bidar, Raichur-Bellary are expressed the bidirectional causality.

Highlights

  • The study concluded that a change in the prices of bengalgram in Kalaburagi market causes the price development in Bidar and Raichur markets, similarly a price change in Bidar market is basis for the price development in Kalaburagi and Bellary markets.
  • The study showed that selected pulses markets in the Karnataka are strongly associated with each other in the long run and illustrated a unidirectional as well bidirectional price transmission effect in both redgram and bengalgram markets.




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