Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221005, Uttar Pradesh
*Corresponding author email: katoch.sonali@gmail.com
Online published on 22 February, 2021.
The study was undertaken to analyse the market efficiency of potato prices from July, 2005 to June, 2020 in Agra, Hooghly, Firozpur, Pune and Delhi markets. After establishing that price series were stationary and integrated of the same order, co-integration test for the long run relationship among the price series was conducted which revealed that all the selected markets were well integrated. Speed of adjustment was found highest in Agra (30%) and Firozpur (14%). The causal relationship between the price series in potato markets was approached through Granger causality technique and Delhi market was found to be the price leader. The shock arising in Delhi market gets transmitted to all other markets with a higher response in the approaching months. To identify the price triggers in major influencing markets, variance decomposition technique was applied which revealed that forecast error variance in Delhi was well explained by variable itself both in short and long run.
