Capturing the Price Volatility of Onion and Potato in Selected Markets of Gujarat


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Authors

  • Hemant Sharma Agro Economic Research Centre, Sardar Patel University, Vallabh Vidyanagar
  • S S Kalankar Agro Economic Research Centre, Sardar Patel University, Vallabh Vidyanagar
  • D P Raykundilya Department of Statistics, Sardar Patel University, Anand 388 120, India
  • M Makwana Agro Economic Research Centre, Sardar Patel University, Vallabh Vidyanagar

Abstract

The study investigates four selected markets of onion and potato for capturing the price volatility. The monthly wholesale price data were used for study of price behavior. The results indicated that a negative trend in arrival was observed in Ahmedabad and Vadodara market and price trends was positive in both the commodities. In seasonal indices, fluctuation in the monthly indices of onion and potato arrivals was more than the monthly indices of their prices in selected markets during the study period. Potato crop observed relatively more stability as compared to onion in the selected markets. The results confirmed that there was high volatility in prices of onion in these selected markets as compared to potato. Policies need to be developed to control the volatile nature of onion prices, which is directly affecting people in the low income group.
Key words: Onion, potato, wholesale price, Gujarat.

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References

Acharya, S.S. and Agarwal, N.L. 1994. Agricultural Prices Analysis and Policy, Oxford & IBH Publishing Co. Pvt. Ltd., New Delhi,. Pp. vii+370.

Basavaraja, H. 1993. Behaviour of price of market arrivals of major crops in Bijapur. Indian Journal of Agricultural Marketing, 7(2): 149-159.

Table 4. Coefficients of average seasonal price variation

Market

Onion

Potato

IPR

ASPV

C.V. for price

IPR

ASPV

C.V. for price

Ahmedabad

0

3

8

0

2

0

Rajkot

0

0

2

0

8

4

Surat

0

1

5

0

6

0

Vadodara

0

3

6

0

8

9

Table 5. ARCH-GARCH analysis results for selected markets

Ahmedabad

Rajkot

Surat

Vadodara

Onion

Alpha(A)

393358

35805

48317

48566

Beta (B)

-0.82331

-0.75109

-0.83432

-0.77849

Sum of A & B

57005

60695

64886

70717

Potato

Alpha(A)

218428

31317

24454

41365

Beta (B)

-0.41086

-0.63688

-0.63547

-0.78056

Sum of A & B

807568

67629

60907

63309

SHARMA et al.

GoI, 2020a. Monthly onion report, Horticulture Statistics Division, Ministry of Agriculture & Farmers Welfare, Government of India, April 2020: 1-9

GoI, 2020b. Monthly Potato report, Horticulture Statistics Division, Ministry of Agriculture & Farmers Welfare, Government of India, April 2020: 1-10.

Lama, A., Jhab, G.K., Paula, R.K. and Gurungaa, B. 2015. Modelling and Forecasting of Price Volatility: An Application of GARCH and EGARCH Models

Agricultural Economics Research Review 28(1): 73-82.

Meera and Sharma, Hemant 2016. “Trend and seasonal analysis of wheat in selected market of Sriganganagar districtâ€. Economic Affairs 61(1): 127-134.

Meera and Sharma, Hemant 2017. “Seasonality and Exponential Smoothing Models for Price Forecasting of Rice in Selected Market of Uttar Pradesh Agricultural Situation in India LXXIII (11): 18-22.

Pietola K, Liu X, Robles M. 2010. Price, inventories and volatility in the global wheat market. International Food Research Institute. Discussion Paper 00996, June: 1- 24.

Sharma, Hemant and Burark, S.S. 2015. “A study of seasonal price behavior and market concentration of maize in Rajasthanâ€. International Journal of Agricultural Economics and Statistics 6(2): 282-286.

Sharma,Hemant, Kalamkar, S.S. and M.C. Makwana 2018. Management of Market Risk through Market Integration: Study of Price Volatility in Domestic Market of Onion in Gujarat. Indian Journal of Agricultural Marketing 32(3): 40-48. https://agmarknet.gov.in/PriceTrends/Default.aspx

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Submitted

2021-01-19

Published

2021-01-19

How to Cite

Sharma, H., Kalankar, S. S., Raykundilya, D. P., & Makwana, M. (2021). Capturing the Price Volatility of Onion and Potato in Selected Markets of Gujarat. Annals of Arid Zone, 59(3 & 4). Retrieved from https://epubs.icar.org.in/index.php/AAZ/article/view/109657

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