Agricultural Market Integration in India

July 3, 2020

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Format: Chicago

Michal Andrle, and Patrick Blagrave. Agricultural Market Integration in India, (USA: International Monetary Fund, 2020) accessed September 18, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

We assess the degree of cross-market price discrepancy (a proxy for market integration), its evolution over time, and proximate determinants, using monthly price data for 21 agricultural goods and 60 markets in India. Econometric analysis shows that cross-market price integration is positively associated with the level of transportation infrastructure, and distance between market pairs. There is no robust evidence that price integration has increased in recent years, suggesting that any positive effects of recent policy initiatives are either small, outweighed by the identified determinants of integration, or yet to come.

Subject: Agricultural commodities, Agricultural sector, Commodities, Economic sectors, Infrastructure, National accounts, Transportation

Keywords: Agricultural commodities, Agricultural sector, Cross-market dispersion, Cross-market markup, Cross-market trade, Cross-region price discrepancy, Global, India, Infrastructure, Market, Market integration, Markup, Markups vis-à-vis, Price dispersion, Price integration, Price transmission, Transportation, WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/115
Stock No:

WPIEA2020115
ISBN:

9781513549163
ISSN:

1018-5941

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