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Market Integration and Price Leadership in India’s Onion Market

Author

Listed:
  • Ujjwal Kanti Paul
  • Gurudas Das
  • Avijit Debnath
  • Tanuj Mathur

Abstract

Despite being the second largest producer in the world, the price of onion witnesses a significant degree of temporal and spatial variation in India. Addressing this issue has become a major challenge for the policymakers of the country. The present study intends to identify the most influential onion markets in India. Johansen cointegration and vector error correction model (VECM) techniques are used to analyse the monthly wholesale price between 2005 and 2015 in 10 major markets. The results show that Hubli is the most dominant market jointly followed by Kolkata and Lasalgaon. The results exhibit the predominant role played by the non-producing markets.

Suggested Citation

  • Ujjwal Kanti Paul & Gurudas Das & Avijit Debnath & Tanuj Mathur, 2016. "Market Integration and Price Leadership in India’s Onion Market," Review of Market Integration, India Development Foundation, vol. 8(1-2), pages 49-64, April.
    • Handle: RePEc:sae:revmar:v:8:y:2016:i:1-2:p:49-64
    DOI: 10.1177/0974929216687881
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    References listed on IDEAS

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    More about this item

    Keywords

    Price volatility; price leadership; Johansen cointegration; VECM; India’s onion market;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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