Examining integration between Agra and Delhi potato markets

Market integration generally assumed that prices changes in one market will be fully transmitted to the other markets. Markets that are not integrated may convey inaccurate price information that might distort marketing decisions and contribute to inefficient product movements. In this study, we examine the integration between Agra and Delhi potato markets. In order to identify a possible co-integration between Agra and Delhi potato markets, Johansen’s co-integration test has been used. Johnson co-integration test result indicated that even though the selected potato markets are geographically isolated, they are well-connected in terms of prices of potato, demonstrating that potato markets have long-run price linkage across them.