Assessment of co-movement of kinnow prices among the domestic markets in Punjab

The study attempts to analyze the weekly co-movement of kinnow prices among the domestic markets in Punjab from 2005 to 2020. The data set covers peak period of kinnow that is from October to March. Four markets were chosen purposively on the basis of annual market arrivals of Punjab viz. Abohar, Amritsar, Hoshiarpur and Ludhiana. To meet the objectives, instability was measured by CDVI which was in different weeks for all selected markets. According to seasonality index, farmers received more than the average price between 11^th to 16^th weeks of the year. Correlation analysis showed that markets moved together and were well integrated meaning the price differential in these markets was not more than transportation cost, implying that they were efficient markets. The price series in the selected markets were stationary and unrestricted. Co-integration test indicated that kinnow prices in the selected markets had long run relationship. The speed of adjustment was low (4%) in Abohar and Hoshiarpur markets and high in Amritsar and Ludhiana markets (26% and 12%). Granger causality test revealed that Abohar market was the key market which influenced the price of the other selected markets. When standard deviation shock was given to Abohar market, an immediate and a high response was noticed in all other markets. The variance decomposition revealed that Abohar was showing strong influence right from the short run period into the future.