Analysing Price Variation and Transmission among Major Potato Markets of Punjab

This study investigated wholesale potato price trends in Punjab, with a specific focus on market integration. The study analysed potato markets in Punjab, covering Amritsar Mewa, Ludhiana, Jalandhar, Hoshiarpur, Ferozpur, and Bathinda. The weekly wholesale potato prices from 2010-11 to 2021-22 were taken from the Punjab statistical abstract and AGMARKNET, and examined year-round price fluctuations. Data confirmed absence of unit root problems; all markets had test statistics below the critical one percent level (3.44%). Johansen co-integration test indicated higher trace statistic values and probabilities below 0.05 percent, confirming the existence of co-integrated series. As far as market integration is concerned, the results revealed that the various wholesale potato markets in Punjab display good integration with a better price connection. This signifies that these markets function in a competitive and effective manner at the wholesale level. The findings from this investigation will guide the policy makers to suggest the pertinent role of the Government in price stabilization. Further the study suggested to strengthen the market intelligence and reducing the distortion in markets will improve the existing overall performance.