Price volatility and integration across cluster bean markets for sustainable development of agriculture in Rajasthan

Though India is the major producer of cluster bean in the world, its prices witnessed significant temporal and spatial variation in the markets. The present study assesses the extent of integration among cluster bean markets and recommends policy option to facilitate integration. Time series secondary data related to monthly average wholesale prices and arrivals of cluster bean were collected from leading markets in Rajasthan from 2004 to 2017 and econometric techniques viz., moving average, ADF based unit root test, Johansen's co-integration test, Granger causality test were used to analyze the collected data. Negative relationship was observed between price and arrival for cluster bean in the markets of Rajasthan. However there have several instances of positive relationship between market arrivals and prices. The prices of cluster bean were non-stationary and observed peak between March and May and high during November and December. The price series were stationary at first difference. Long run equilibrium relationship and co-integration between selected markets was observed. Most of the selected markets showed bi-directional influence on cluster bean prices of each other and function as a satellite market and assimilate information. Effective markets information through price forecast of cluster bean within different markets of the state should be facilitated. Government should invest in warehousing, processing and other infrastructure to sustain the efficiency of cluster bean markets in Rajasthan.