Pigeonpea (Cajanus cajan L.) price movement across major markets of India

Pigeonpea is one of the major pulse crops grown across India. The last decade witnessed large fluctuations in prices of pigeonpea. The present study aimed to study price movement of pigeonpea, i.e., seasonal variation, price volatility and cointegration among the major pigeonpea markets in India. Data related to monthly average prices of pigeonpea were collected from major markets for the period 2003–2011 across different States, viz., Akola and Latur (Maharashtra), Alwar (Rajasthan), Sedam (Karnataka) and Thandur (Andhra Pradesh). Moving average method was used to study seasonal variation. The econometric tools like ADF test, Johansen's multiple cointegration test, Granger causality test and ARCH-GARCH model were used to analyse integration of markets across locations. The results of the study showed that the prices of pigeonpea were higher in the months from June to August in all selected markets. All the price series were stationary at first difference. The selected markets showed long run equilibrium relationship and co-integration between them. Most of the markets showed bidirectional influence on pigeonpea prices of each other. Alwar, Sedam and Latur markets were influenced by their own lag, while Akola, Latur and Thandur markets showed high price volatility.