Market Integration of Major Cotton Producing States in India

Market integration of agricultural product has been widely used to indicate overall market performance. Hence the study was under taken to test market integration of wholesale prices of Cotton among major Cotton producing states in India. The major states selected for the study were Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Andhra Pradesh, Tamil Nadu and Karnataka states. Results revealed that, all the Cotton price series are non-stationary at level and become stationary after first differentiation confirms that all the price series are integrated of same order [I(1)]. From market integration results, we can say that, all the Cotton state markets under study are co-integrated and converge to long run equilibrium.