1Senior Faculty GP Education, SRM University AP, Amaravati, Vijayawada, Andhra Pradesh, India, Email id: raviprakashsiddavatam@gmail.com
2Principal, Avanthi PG College, Dilshuk Nagar, Hyderabad, Telangana, India, Email id: dr.s.apparao@gmail.com
Online Published on 18 January, 2022.
The present study is time series analysis on daily closing prices for six year of turmeric futures (NCDEX) and spot market prices in Nizamabad. Price discovery and price risk management are important goals/aim of this paper. The future and spot prices of turmeric commodity for six years are studied by using Unit Root test, Johansen Co-integration test, Granger Causality test, VECM, Wald test, Variance Decomposition test & Impulse Response Graphs by using Eviews software Version 10. Futures are unbiased predictor of spot and this is the hypothesis that has been tested by using above econometric tools. Both market prices are well integrated and have relation in short and long terms. It emphasis on continuation of turmeric futures for better price risk management of traders in India.
Futures, Spot, Price Discovery, Price Risk, Co Integration, VECM, Stationarity, Lag
