Price behavior and market integration of chickpea in India
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Date
2018
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Punjab Agricultural University, Ludhiana
Abstract
This study was conducted in chickpea’s major producing states of India. Those states were
Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Uttar Pradesh.
They accounted more than 80 per cent in area and production of chickpea in the country
during TE 2015-16. Compound annual growth rate and variability of area, production and
yield of chickpea in the selected states and all India were examined for the period from 195051
to 2015-16. The CAGR of area, production and yield during the overall period were 0.05,
0.08 and 0.13 per cent respectively. The variability for the same period was 14.23, 13.31 and
9.96 per cent respectively. The growth rate in area and production were found to be positive
in all the selected states except Uttar Pradesh. One major market was taken from the each
selected states to study the price behavior and integration of markets. The minimum support
price, farm harvest price, wholesale price and retail price of chickpea had been increasing
over the years. Seasonality was observed in wholesale price as well as in retail price of
chickpea. The farm harvest prices in the selected states were found to be fluctuated over the
years. Advance econometric analysis like Granger Causality test, Johansen Co-integration test
and Vector Error Correction Model were employed to examine the integration of markets. Out
of six selected wholesale markets, 5 markets were having a long run relationship and out of
six selected retail markets, 4 markets were having a long run relationship. Hence, the selected
chickpea markets were integrated in the long run. Concentration of marketing during lean
seasons would help reducing the seasonality of price of chickpea.
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