Co-integration of Major Vegetable Markets in Punjab, India

Abstract

The present study was formulated to analyze the level of market integration in the major vegetable markets in Punjab. The study was undertaken on a macro framework based on data collected from secondary sources through employing different tests, namely Johansen co-integration test, Grangner causality test. The investigations of integration between sample markets indicated that in case of all of the vegetables the state markets are found to be well integrated among each other and also with the national market (New Delhi) with an exception in case of tomato where it was seen that there was not any integration found between Ludhiana and Jalandhar market which was due to communication problems and lack of market intelligence between those markets. Hence in order to continue the competitive condition of these markets there is need to strengthen the market intelligence and communication within markets so that a better platform could be placed for guiding the farmers in marketing their produce.