Author(s): Veerabhadrappa Bellundagi, Umesh KB and Hamsa KR

Abstract: The goal of the study was to evaluate the co-integration of the five most important Ragi (finger millet) markets in Karnataka. The study employed secondary monthly time series of wholesale price data from Krishi Marata Vahini, spanning the period of January 2010 to July 2022. (Online Agricultural Marketing Information System). The Johnson’s multiple co-integration results showed that, three of five markets were cointegrated at a 5 per cent level of significance indicating that the markets for finger millet were cointegrated and had long-run equilibrium relationships and there existed co-integration among these markets. The price of the Kadur market has demonstrated a two-way relationship with the prices of the Bengaluru, Tumakuru and Nagamangala markets indicating that, the former market in each pair Granger causes the formation of the wholesale price in the latter market, which in turn gives the former market feedback. The results of the Vector Error Correction Model (VECM) showed that 0.5% to 2.7% of divergence from the long-run equilibrium was being corrected monthly, with the coefficient of speed of adjustment ranging from -0.005 to -0.027. In conclusion, the main policy advice would be to reinforce the state's physical infrastructure, make agricultural policies more transparent, and employ information and communication technologies to assist, create a uniform and integrated economic market.

Pages: 1059-1064 | Views: 137 | Downloads: 16

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