Market Integration and Causality in Pear in India

The current study focuses to explore the degree of market integration in William Bartlett variety of pear grown in Kashmir, commonly known as Bagughosha, through co-integration analysis on the wholesale weekly prices of its two commercial grades Bagughosha Super and Bagughosha Special, collected from two national fruit markets of India (Delhi and Mumbai), from August, 2005 to October, 2013. The results reveal that Pear markets were co integrated and competitive. A disequilibrium ranging from 16.47 to 50.33% among the selected grades of the fruit was observed. VAR and VECM models were used to study the behaviour of market prices, which revealed that Delhi market turned most dominating market for higher prices of the selected variety and grades.