VOLATILITAS HARGA BAWANG MERAH DI INDONESIA

Shallot is one of the strategic horticultural commodities and has a high economic value. This study aims to analyze marketing (transmission) efficiency and asymmetry of the price shallots in Indonesia. Price asymmetry analysis is performed using the Error Correction Models (ECM) approach. The results showed that there had been price asymmetry which meant that the transmission of prices or prices were passed on between marketing institutions. This is due to the imperfect transmission of prices due to market inefficiencies both in the short and long term. In this case producers do not benefit from price increases at the consumer level and consumers do not benefit from price decreases at the producer level. The result of this research recommend the need for government intervention to oversee the marketing chain to the wholesale market. The government needs to organize the distribution of production centres, distribution of harvests between regions, and oversee and evaluate the shallot price policy. These policies aim to ensure the adequacy and smooth distribution of shallots.