School of Agricultural Economics and Horti-Business Management, Division of Agricultural Statistics, SKUAST-K, Shalimar, Jammu & Kashmir
*Corresponding author: mubashirkachroo@gmail.com
Online published on 24 March, 2023.
The study analyses the relationship between futures prices and spot prices of spices employing Johansen’s cointegration, and Granger causality tests. There was a positive trend in prices of selected spices. Seasonality was observed in these. The price series were cointegrated at 1% significance level and a uni-directional causality existed indicating futures prices as a means of price discovery process. Proper storage facilities through improvement in warehouse structure, storage chambers were suggested in order to improve the retention capacity of the farmers.
