Co-integration of groundnut markets in Gujarat with special reference to the Saurashtra region

Abstract

Oilseeds play an important role in Indian agriculture as the second major crop (next to cereals). Groundnut (Arachis Hypogaea L.) is one of the important oilseed crops among major oilseed crops in India and Gujarat. Gujarat ranks first in the area and production of groundnut among all the states of the country accounting for 34 and 43 percent respectively. The study utilized monthly time series data on arrival and prices of groundnut for 20 years (April-1998 to March-2018). The market co-integration was calculated by us Engle-Granger Co-integration test. The results of the Granger Causality test concluded that Select groundnut markets in the Saurashtra region have considerable integration. According to the findings of the overall co-integration test, Saurashtra's various wholesale groundnut markets are well-integrated and have a long-term pricing relationship.