Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004, Punjab
*Corresponding author: shrutichopra95@gmail.com
Online published on 22 February, 2021.
Present study was attempted to workout profitability of green pea crop in Punjab and analyzed the extent of price integration among the spatially separated markets using both primary and secondary data. The results of the study have confirmed profitable gross returns and presence of cointegration, implying the price transmission among markets. To get further evidences as to whether and in which direction price transmission is occurring between the markets pairs, Granger causality test has confirmed Amritsar to be the price-determining market. A shock originating from the Amritsar wholesale market is more or less transmitted to all other major green pea markets in the state confirming the its dominance in price determination. It was found that when a standard deviation shock was given to any market, the responses of all other markets disappear between 1 and 2 months. This could be due to role of modern technology and internet facilities but still, the difference in prices in different markets leaves farmers at price risk. Study suggested improvement of the information precision to envisage the price movements used by marketing operators for their strategies.
