*Professor, Department of P.G. Studies and Research in Commerce, Gulbarga University, Gulbarga
**Assistant Professor in Commerce, Commerce, Government First Grade College, Agara, HSR Layout, Bangalore -560102
Online published on 13 February, 2014.
The research article tested the efficiency of chilli futures market in India with respect to price discovery and price stabilization. Various tests employed indicate there is long run equilibrium relation exists between spot and future price in chill commodities. Future market for red chilli in India is leading the spot market in impounding future expectations about the future spot price. The results also corroborates that similar relationship is exists in case of other agro commodities as per the studies conducted by others.
