Market integration and price transmission of soybean markets in Maharashtra

Fluctuations in market arrivals largely contribute to price instability and price volatility in any crop. The knowledge emanating this empirical analysis helps farmers to decide the optimum time for disposing their produce for their best advantage. The data pertain to monthly prices and arrivals of soybean in seven major soybean markets of Maharashtra for the period of 15 years (1997 to 2011). The study concluded that an increasing trend in arrivals and prices was found in almost all markets. Since soybean is a kharif crop, the higher seasonal indices of arrivals were from October to December during which the prices were lower side. The Intra Year Price Rise for soybean varied from 6.08 per cent to 20.61 per cent and the value of Average Seasonal Price Variation was from 1.60 per cent to 18.68 per cent in selected markets. The lagged price was discerned an important factor in determining the current price than the market arrivals. The market integration results concluded that out of seven markets, four markets were integrated.