Agricultural Market Integration in India

21 Pages Posted: 23 Jul 2020

See all articles by Michal Andrle

Michal Andrle

International Monetary Fund (IMF)

Patrick Blagrave

International Monetary Fund (IMF)

Date Written: July 2020

Abstract

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.

Keywords: Cost of living, Supply and demand, Agricultural commodities, Agricultural product marketing, Price dispersion, Market integration, Price transmission, India, WP, cross-market, markup, i, j, regression

JEL Classification: F15, E39, O53, E01, O14, E31, D4, J3

Suggested Citation

Andrle, Michal and Blagrave, Patrick, Agricultural Market Integration in India (July 2020). IMF Working Paper No. 20/115, Available at SSRN: https://ssrn.com/abstract=3658589

Michal Andrle (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Patrick Blagrave

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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