Lack of integration of major potato markets in India

This study is based on time series analysis. Market integration between important potato markets of India was studied on the basis of difference of price minus transportation cost between the concerned markets; and Karl Pearson's correlation coefficient of potato prices for those markets. It was found that October and December were the crucial months when most of the markets showed a wide variation in prices and hence non-integration in relation to India's largest potato market i.e. Delhi, Ahmedabad and Jalandhar markets showed many opportunities where traders could have earned very good profits by transporting potatoes either from or to Delhi. The correlation coefficients of potato prices showed that the markets were not integrated even at shorter distances when there was not a high risk of spoilage in transportation. Such non-integration of potato markets in India may be mainly due to marketing infrastructural bottlenecks and imperfections.