Market integration and price volatility of green gram in Maharashtra
VP Wavdhane, AS Tingre, AA Bhopale and RG Deshmukh
Green gram is one of the important pulse crops in India. It has been reported that Green gram has been cultivated in India since ancient times. The present study aimed to know Market integration of Green gram i.e. seasonal variation, price volatility and co-integration among the major Green gram markets in Maharashtra. For study purpose the data related to monthly average prices of Green gram were collected from major markets of Maharashtra state viz. Buldana, Akola, Amravati and Latur markets for the period 2005 to 2016. Moving average method was used to study seasonal variations. The econometric tools like ADF test, Johansen's multiple co-integration tests, Granger causality test and ARCH-GARCH model were used to study price volatility and co-integration among different markets. The results of study showed that the prices of Green gram were higher in the months from December to June in all the selected markets. The cyclical variation observed in the prices of Green gram in the selected markets. For all selected markets, the price series showed the consequences of unit root and were stationary at first difference. The selected markets showed long run equilibrium relationship and co-integration between them. Most of the markets showed bidirectional influence on Green gram prices of each other. Buldana, Akola, Amravati and Latur market, recorded price volatility in Green gram prices.
How to cite this article:
VP Wavdhane, AS Tingre, AA Bhopale and RG Deshmukh. Market integration and price volatility of green gram in Maharashtra. The Pharma Innovation Journal. 2021; 10(1S): 228-231.