Girish Kumar JhaRajeev Ranjan kumar2017-04-192017-04-192014http://krishikosh.egranth.ac.in/handle/1/5810009790T-9109In view of increasing share of energy in the cost of cultivation as well as deregulation of prices of some petroleum products, agricultural commodity prices are vulnerable to the rise in energy prices, particularly of crude oil. In this study an attempt has been made to examine the co-movement between energy and agricultural commodity prices with the help of Johansen cointegration technique using monthly wholesale price indices for the period April 1994 to March 2014. Since the process of deregulation started from April 2002 onward, the entire period was divided in two equal parts, so that before and after period analysis will provide a clear picture of a potential link between prices. The results clearly revealed that energy and selected agricultural commodity prices are integrated in the long-run since 2004 while fruits prices were integrated even before deregulation of petroleum price. This means that there is an increasing tendency for price changes in selected agricultural commodities corresponding to changes in international crude oil prices in recent years. Further an effort was also made to examine energy growth linkage in major states of India with the help of panel cointegration using annual time series data of real GSDP from agriculture and allied sectors and corresponding electricity consumption for agriculture during 1990-2010. The empirical analysis fully supported a positive long-run cointegrated relationship between GSDP and electricity consumption when the heterogeneous state effect was taken into account. It was observed that although agricultural growth and energy consumption lack short-run causality, there is long-run unidirectional causality running from energy consumption to agricultural growth. This implies that reducing energy consumption does not adversely affect agricultural growth in the short-run but would in the long-run, thus energy demand will increase in future in order to achieve higher agricultural growth. BennullThesis