A Study on Behaviour of Arrivals and Prices of Cotton in Different Markets of Punjab

The present study was conducted to analyze the seasonal variation, trend market integration growth rate in arrivals and prices of cotton in different markets of Punjab. Five cotton markets were selected from five districts i.e. Bathinda, Ferozpur, Muktsar, Mansa and Faridkot of south western zone (cotton belt) of Punjab. The data were analyzed by using various statistical techniques like exponential model, trend, and regression and co-integration method. The beginning of the marketing season of cotton was September and an arrival during this period was normal. October-January was the period of maximum arrivals. February-April was considered to be a lean period. Seasonal indices of arrivals and prices of cotton showed reverse pattern at all levels of market except some variations. The analysis of time series trend showed that arrival and prices of cotton increases over a period of time in all the markets. The cotton markets in Punjab shown to be integrated over space but not time. This is mainly attributed to close proximity, good communication facilities and good infrastructure availabilities among markets of the state. The high degree of spatial market integration shows that cotton markets in the state are competitive and efficient. The result also shows that the prices of cotton tend to move uniformly across spatial markets. Importantly, the distance between markets was not an impediment to efficient adjustment of price to new information. It was concluded that price changes are fully and immediately passed to different markets.