Price Transmission in Major Cumin Markets of India

The study attempts to analysemarket cointegration, price transmissionandcausalityin four major cumin markets of India viz., Unjha, Rajkot, Jodhpur, and Mertafor the period 2012–2019. Integration across selected cumin markets was analysed using Johansen's cointegration approach. Johnson's cointegration test has shown that even though the selected cumin markets are isolated and spatially segmented, they are well-connected in terms of prices, and have long-run price association across them. The coefficient of the error correction term was negative and significant for all market pairs. The present study implies that the prices of cumin are stable in the long-run and any deviation in these due to external shocks that occur in the short-run, are well adjusted. The Granger causality test has confirmed the occurrence of price transmission across markets, implying that bidirectional causality exists between thesemarkets.