STUDY OF PRICE BEHAVIOUR OF SOYBEAN IN MAHARASHTRA STATE

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Date
2018
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Acharya N.G. Ranga Agricultural University
Abstract
The present study entitled “Study of price behaviour of soybean in Maharashtra state” was undertaken to study the price trends of soybean, price forecasts and to estimate price volatility. The study was conducted in major soybean markets of Maharashtra state. Four markets i.e., Latur, Khamgaon, Hinganghat and Nagpur were selected based on maximum arrivals. The data pertained to the period from 2001-02 to 2017-18. Apart from using simple linear trend method, twelve months ratio to moving average method, ARIMA, ANN, ARCH and GARCH models were also used. There was an increasing trend in the prices of soybean in all the selected markets and were found to be highly significant at 1 per cent level of significance. The annual increase in prices of soybean was found to be highest in Latur market (Rs.14.49 /qtl), whereas lowest in Higanghat market (Rs.12.85 /qtl). In all these markets, the contribution of independent variable time to the change in prices was to the tune of 73 per cent to 77 per cent. There was not much variation in the extent of increase in prices of soybean in the selected markets. xii In all the selected markets, seasonal variation in prices were observed. In Latur market the highest seasonal index was found in May (109.99), whereas lowest seasonal index was recorded in October with 84.89. In Khamgaon market highest seasonal index was found in May (108.63), whereas minimum seasonal index was recorded in October with 89.69. In Nagpur market highest seasonal index in May (108.46), whereas lowest seasonal index was recorded in October with 88.44. In Higanghat market highest seasonal index was found in June (106.32), whereas lowest seasonal index was recorded in October with 92.01. In all the markets the seasonal indices were highest in May and lowest in the month of October. It is inferred from the results of cyclical variations, that there were no cyclical variations of soybean prices in the selected soybean markets of Maharashtra. Irregular fluctuations did not exhibit any definite periodicity in their occurrence in Latur, Khamgaon, Nagpur and Higanghat soybean markets. The results of ARIMA model for soybean in selected markets of Maharashtra indicated that the prices predicted from April to September,2018 would be ranging from Rs.3,680 to Rs.3,744 in Latur market, Rs.3,433 to Rs.3,490 in Khamgaon market, Rs.3,538 to Rs.3,604 in Nagpur market and Rs.3,320 to Rs.3,414 in Higanghat market. With respect to price volatility, the results revealed that there was high volatility in Nagpur and Higanghat markets for soybean prices as the sum of Alpha and Beta values were 0.99 next followed by Latur market (α+β = 0.92) and Khamgaon market (α+β = 0.88) during the period from 2002-03 to 2017-18.
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D5680
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