This study has assessed the performance of selected agricultural markets in the state of Telangana. The correlation and co-integration analyses were carried out to determine the spatial market integration of cotton. For co-integration analysis, the time series data were tested using the Dickey-Fuller unit root test followed by Engle-Granger test to determine the market integration. The market integration analysis has revealed a moderate correlation for cotton which ranged from 0.486 involving Bainsa-Peddapalli markets to 0.870 involving Adilabad-Bainsa markets and all of them were significant at 1 per cent level of significance. Dickey-Fuller unit root test has revealed that the market prices for all the crops were stationary in nature for the period under study. Engle-Granger test has revealed that all the markets were perfectly co-integrated with each other in terms of market prices. Karimnagar and Warangal (−6.9) markets have shown high co-integration and Adilabad and Peddpalli (3.8) markets have shown low co-integration with each other in terms of market prices.
Market integration, market price, cotton, Telangana
