Market Integration and Price Transmission Mechanism in Major Potato Markets of Punjab, Pakistan
Muhammad Ismail Khan *
Department of Economics and Agri. Economics, Pir Mehr Ali Shah Arid Agriculture University Rawalpindi, Pakistan.
*Author to whom correspondence should be addressed.
Abstract
This study is used to measure by the degree of mixing, of agriculture markets for potato crop within the Punjab province of Pakistan using monthly extensive market prices from the Agriculture Management Information System (AMIS) from 2011 to 2020 for the eight selected markets i.e Khanewal, Bahawalpur, Kasur, Lahore, Multan, Okara, Rahimyarkhan and Sheikhupura. Johansen Cointegration model was applied for determining the level of cointegration between selected markets using maximum likelihood estimate approach. This Study investigated market integration and price transmission in the potato markets. The results discovered that potato markets are well cohesive equally horizontally and vertically, with the speed of price adjustment. Furthermore, the trends in cropping patterns over the amount 2000 to 2014 are in line with the changing market demand and government price interventions. The reforms introduced by the Punjab Agriculture Marketing regulatory Agency (PAMRA) Act 2020, aimed towards increasing competition in agriculture markets and have the potential to significantly enhance economic efficiency.
Keywords: Coheritability in Lentil, Agriculture prices, Lentil breeding, market integration, price transmission, market efficiency, agriculture marketing