A Study on Value Chains, Price Transmission and Integration of Banana Markets in India

This study mapped the banana value chain in Coimbatore and Trichy districts which reveals a complex, fragmented banana value chains with large intermediations. Research also highlights the trend in banana prices in eight major banana markets in India. Secondary data on banana monthly prices spanning 2004/2013 were sourced from National Horticultural Board Statistics (NHM Stat). The data were analyzed using Augmented Dicker Fuller(ADF) test, Johanson Co integration and Granger causality tests. Banana prices were all integrated of order one I (1). Four market links exhibited bi-directional granger causality or simultaneous feedback relationship while four market links exhibited unidirectional granger causality at 5% and 10% level of significance Co integration results showed that the regional markets have price linkages, and thus are spatially integrated.