Madras Agricultural Journal
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Research Article | Open Access | Peer Review

Cointegration between Domestic and International Market Prices of Beverage Crops in India

Volume : 105
Issue: Jan-mar
Pages: 99 - 108
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Abstract


This study has been attempted to investigate market integration between the domestic and international market prices of the beverage crops viz. tea, arabica coffee, robusta coffee and cocoa in India. Attempts was also taken to determine the extent of integration between the markets. The coefficients of monthly price of tea, coffee and cocoa among all the selected markets were positive and negative and significant at five per cent level and indicates strong market integration. The results of VECM revealed that there was significant relationship in the short run and long run equilibrium between the market prices of tea and coffee whereas in case of cocoa there was only long run relationship. The findings revealed that tea and coffee had linkages between the domestic and international markets whereas cocoa remained independent and the suitable policies were formulated

DOI
Pages
99 - 108
Creative Commons
Copyright
© The Author(s), 2026. Published by Madras Agricultural Students' Union in Madras Agricultural Journal (MAJ). This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited by the user.

Keywords


Beverage crops ADF test Johansen’s cointegration Vector error correction Mechanism.
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