Market outlook of major paddy markets in India

Monthly modal prices of paddy corresponding to Nizamabad and Suryapet markets became stationary at level as well as at first difference, where as the prices of Sindhanur and Toofanganj markets became stationary only after first differencing. Johansen's multiple co-integration tests revealed long-run equilibrium relationship among the markets. The causality test revealed a bi-directional influence of paddy prices between Sindhanur and Nizamabadand, Suryapet and Nizamabadand and Sindhanur and Suryapet markets. The Toofanganj market prices have depicted uni-directional causality on the prices of Nizamabad and Sindhanur and Suryapet market prices have shown uni-directional causality with Toofanganj market prices. Nizamabad market came to short run equilibrium within 24 days as indicated by co-efficient values. The results of Vector Error Correction Model (VECM) showed that most of the markets considered under this study were integrated to each other.