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International Journal of Current Microbiology and Applied Sciences (IJCMAS)
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National Academy of Agricultural Sciences (NAAS)
NAAS Score: *5.38 (2020)
[Effective from January 1, 2020]
For more details click here

ICV 2018: 95.39
Index Copernicus ICI Journals Master List 2018 - IJCMAS--ICV 2018: 95.39
For more details click here

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Original Research Articles

PRINT ISSN : 2319-7692
Online ISSN : 2319-7706
Issues : 12 per year
Publisher : Excellent Publishers
Email : editorijcmas@gmail.com / submit@ijcmas.com
Editor-in-chief: Dr.M.Prakash
Index Copernicus ICV 2018: 95.39
NAAS RATING 2020: 5.38

Int.J.Curr.Microbiol.App.Sci.2018.7(3): 1090-1097
DOI: https://doi.org/10.20546/ijcmas.2018.703.130


An Integration of Major Coffee Consuming Centres in India – An Economic Analysis
M. Balakrishnan* and K. Chandran
Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu - 641 003, India
*Corresponding author
Abstract:

The price signals of agricultural commodities from markets located in different locations play a very important role in the economy. The price signals guide and regulate production, consumption and marketing decisions over time. Therefore, if markets are not well integrated, the price signals are distorted, which will lead to inefficient resource allocation and hamper sustainable agricultural development. This paper employs an econometric modeling for estimating a vector error correction model (VECM) to investigate the degree of spatial market integration and price transmission between the important coffee consuming centers in India (viz. Bangalore, Chennai and Hyderabad) using month-wise wholesale prices of coffee seeds. The bidirectional causality among the monthly Wholesale Prices of Rs/kg of clean coffee seeds of Arabica Parchement variety in Bangalore and Chennai markets. There was a long-run co integration relationship between Hyderabad consuming centre and Bangalore consuming centre with other consuming centre as the co integration coefficient for these consuming centres are Positive and significant at one per cent level. Similarly, it was found that a long-run co integration relationship between Bangalore consuming centre with other consuming centres as the co integration coefficient for Bangalore consuming centre is Positive and significant at one per cent level.


Keywords: Coffee, Agricultural commodities, Economic analysis
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How to cite this article:

Balakrishnan, M. and Chandran, K. 2018. An Integration of Major Coffee Consuming Centres in India – An Economic Analysis.Int.J.Curr.Microbiol.App.Sci. 7(3): 1090-1097. doi: https://doi.org/10.20546/ijcmas.2018.703.130