Author(s): Ajay Sharma & Joginder Kumar

Abstract: Onion is a staple crop in India with significant economic and nutritional value, the market is often characterized by price volatility and spatial disparities due to perishability, regional supply-demand mismatches, and infrastructure gaps. Understanding regional price linkages is vital for ensuring efficient market functioning and farmer welfare. This study investigates the spatial price dynamics of onion across major regional markets in India using advanced multivariate time-series econometric techniques, including the Johansen cointegration test, Granger causality analysis, and Impulse Response Function (IRF). The Johansen Cointegration test confirmed that the selected markets are integrated, and the Granger Causality test was conducted to understand the direction of price transmission among them. The results showed that some selected market pairs had a bidirectional price relationship, while most exhibited unidirectional transmission and a few had no causality association. This indicates that price changes in one market significantly influence others across selected markets and found that Nasik played a major role in transmitting price signals. This research provides valuable insights for policymakers, traders, and supply chain stakeholders by quantifying the extent of market integration and understanding how shocks in one market affect others.

Pages: 01-10 | Views: 126 | Downloads: 1

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