Capturing the Price Volatility of Onion and Potato in Selected Markets of Gujarat
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Authors
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Hemant Sharma
Agro Economic Research Centre, Sardar Patel University, Vallabh Vidyanagar
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S S Kalankar
Agro Economic Research Centre, Sardar Patel University, Vallabh Vidyanagar
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D P Raykundilya
Department of Statistics, Sardar Patel University, Anand 388 120, India
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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.
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GoI, 2020b. Monthly Potato report, Horticulture Statistics Division, Ministry of Agriculture & Farmers Welfare, Government of India, April 2020: 1-10.
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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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