INTEGRATION AND CAUSALITY OF MAJOR GARLIC MARKETS IN UTTAR PRADESH STATE
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Authors
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SUNIL JHADE * and ABHISHEK SINGH
Department of Agricultural Engineering, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi - 221 005
Keywords:
Augmented Dickey-Fuller, Co-integration, Granger causality test, Market integration, StationarityAbstract
Garlic prices showed volatility over the past few years, exposing the growers to more risk and
consumers paying more.The lack of market intelligence about the potential markets and their pattern
of arrivals and prices are the main causes for distress sale of the garlic. The study was aimed to
assess the extent and integration among garlic major markets and to study the price movement of
garlic major markets in Uttar Pradesh. Different tests viz.,Augmented Dickey-Fuller test, Johansen
co-integration test, Granger causality test were used for analysis,Monthly wholesale prices from January
2010 to December 2019 of garlic were collected from major garlic markets in Uttar Pradesh. The
study recorded that all major markets were well-integrated and at least two co-integrating equations
were confirmed by the Johansen test. The Granger causality test indicated that there was bi-directional
causality observed in garlic prices between Etah and Luckow markets. The remaining all market pairs
exhibited unidirectional causality and affects.
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