Author(s): Punith Kumar and JS Sonnad

Abstract: Indian millets, including pearl millet, finger millet, foxtail millet, and little millet, contribute significantly to the country's agriculture. With diverse climates supporting their growth, India is a major producer. The marketing of millets is essential, and co-integration analyses, such as those conducted in this study, help understand price relationships, ensuring a holistic view of the market dynamics for effective agricultural policies. The study conducted a comprehensive co-integration analysis to explore the inter-market price relationships among major pearl millet markets in Karnataka, specifically focusing on Gangavathi, Kushtagi, Manvi, and Sindhanur markets over a ten-year period (2011-12 to 2021-22). The first step involved Augmented Dickey-Fuller Unit Root Tests to check for data stationarity. Subsequently, Johansen co-integration tests were applied, revealing significant long-term integration among the markets. The study inferred that price changes in one market had a substantial impact on others. Granger causality tests further affirmed the existence of co-integration, identifying both unidirectional and bidirectional relationships among the markets. Factors such as transportation costs and demand were suggested as potential contributors to the observed unidirectional relationships. The Vector Error Correction Mechanism was employed to estimate co-integration coefficients, with results indicating structurally significant cointegration between Gangavathi and Sindhanur markets. This suggested that these markets corrected about 29.62% and 48.09% of price losses over a one-month period. The study demonstrated bidirectional market integration for pearl millet prices between Manvi and Gangavathi, as well as Manvi and Kushtagi markets, signifying mutual influence. Unidirectional relationships were observed for Kushtagi and Gangavathi, Gangavathi and Manvi, Kushtagi and Manvi, and Manvi and Sindhanur markets, indicating a one-way impact on prices. The overall findings implied that these markets were influenced by each other's price changes, providing valuable insights into the dynamics of pearl millet markets in Karnataka.

DOI: 10.22271/maths.2023.v8.i6Si.1448

Pages: 658-661 | Views: 147 | Downloads: 3

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