An economic study of behaviour of market arrivals and prices of onion, garlic and turmeric in selected markets of U.P.

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1 Volume 5 Issue 2 September, e ISSN International Research Journal of Agricultural Economics and Statistics Visit Us - DOI : /HAS/IRJAES/5.2/ Research Paper An economic study of behaviour of market arrivals and prices of onion, garlic and turmeric in selected markets of U.P. DIWAKER NATH SHUKLA AND J. RAI See end of the paper for authors affiliations Correspondence to : DIWAKAR NATH SHUKLA Department of Agricultural Economics and Statistics, C.S. Azad University of Agriculture and Technology, KANPUR (U.P.) INDIA jharakhande_9csauk@redifmail. com Paper History : Received : ; Revised : ; Accepted: ABSTRACT : This study has been undertaken with the twin objectives of examining the variability pattern of market arrivals and prices of selected crops (Onion, Garlic and Turmeric) in selected markets (Lucknow and Kanpur) of Uttar Pradesh and analysing the relationship between market arrivals and prices. The study is based on market arrivals and wholesale prices of selected crops collected from Rajya Krishi Utapadan Mandi Parishad, Lucknow (U.P.), Krishi Utapadan Mandi Samiti, Lucknow and Krishi Utapadan Mandi Samiti, Kanpur for the period The study has shown that the extent of variability in market arrival of onion was lower in Lucknow market but higher in Kanpur market. Its prices variability was lower in Kanpur market and higher in Lucknow market. In case of garlic, the variability in market arrivals and prices was lower in Kanpur market but higher in Lucknow market. In case of turmeric, the variability in market arrivals and prices was lower in Lucknow market but higher in Kanpur market. The study has confirmed the negative relationship between market arrivals prices of onion, garlic and turmeric over the years in all two markets. However, across different months, there have been several instances of positive relationship between market arrivals and prices in Lucknow and Kanpur market. KEY WORDS : Onion, Garlic, Turmeric Market arrivals, Prices, Variability, Relationship HOW TO CITE THIS PAPER : Shukla, Diwaker Nath and Rai, J. (2014). An economic study of behaviour of market arrivals and prices of onion, garlic and turmeric in selected markets of U.P. Internat. Res. J. Agric. Eco. & Stat., 5 (2) : INTRODUCTION Agriculture is one of the most critical sectors of the Indian economy. Growth and development of agriculture and allied sector directly affects well-being of people at large, rural prosperity and employment forms an important resource base for a number of agro-based industries and agro-services. Indian agriculture is witnessing a shift towards horticulture diversification and growing high value crops. With the result, the country has become the second largest producer of fruit and vegetables in the world, next only to China. One of the biggest constraints in the horticulture sector has been the extent of post-harvest losses which is about per cent with monetary value amounting to around Rs. 44,000 crores based on wholesale prices of 2009 (Anonymous, 2010; Kumar et al., 2005). The high wastages occur due to multilayered marketing channels, lack of marketing infrastructure, fragmented cold chains, absence of sufficient cold storage and associated logistics as well as unorganized distribution system. High wastages and constantly shifting consumers preference towards horticultural perishables have been creating demandsupply mismatch resulting in uneven price fluctuations. In addition, the present system of marketing practices is not offering remunerative prices to the growers while consumers are paying 1.75 to 3 times more over the wholesale price causing food inflation in the country. There is an urgent need to develop adequate post-harvest marketing infrastructure easily accessible to the growers to reduce the wastages substantially and shorten the supply chain of perishables. The variations in the output of these crops lead to wild

2 DIWAKER NATH SHUKLA AND J. RAI fluctuations in their prices, exposing the vegetable growers to more risk as compared to the growers of other crops. In addition, horticultural based diversification has another set of marketingrelated problems. Inadequate market infrastructure and too many intermediaries between the producers and consumers lead to high marketing costs, resulting in lower share of producer in the consumer s rupee. The lack of market intelligence about the potential markets and the pattern of market arrivals and prices in important regional and national markets further add to the woes of the farmers. The availability of market intelligence on aspects like the potential markets, the quantum of market arrivals and prevailing and expected prices in different regional, national and international markets during different months of the year shall go a long way in mitigating many of these problems. Not only that, it shall help the farmers in adjusting their cropping pattern in a way so that they could sell their produce at a time when the prices are reasonably high in the market. Keeping the above-mentioned facts and to see the importance and utility of study is to be taken as An economic study of behaviour of market arrivals and prices of onion, garlic and turmeric in selected markets of U.P. with following specific objectives. To examine the pattern of market arrivals and prices of onion, garlic and turmeric in term of the degree of variability in selected markets. To analyze the relationship between market arrivals and prices, both over the years and across the months in selected markets. MATERIALS AND METHODS The study is based on secondary data of ten years. The data on market arrivals and wholesale prices of different selected crops (onion, garlic and turmeric) of the selected markets collected from Rajya Krishi Utapadan Mandi Parishad, Lucknow (U.P.), Krishi Utapadan Mandi Samiti, Lucknow and Krishi Utapadan Mandi Samiti, Kanpur. The data pertained to the period and included monthly information also. The pattern of market arrivals and price behaviour of the selected crops over the period was analysed in terms of mean value for each month and the co-efficient of variation. The Karl Pearson correlation co-efficient was computed to find the degree of relationship between market arrivals and prices. The prices of the different commodities were predicted for different months using appropriate statistical models. RESULTS AND DATA ANALYSIS The findings of the present study as well as relevant discussion have been presented under the following heads : Variability in market arrivals and prices of onion : The market-wise analysis across the different months have been worked out in Table 1. The variability in arrivals of onion in Lucknow market was maximum per cent during the month of June and quite low per cent during the month of December. The average volume of onion received in Lucknow market was maximum quintal during the month of March and lowest quintal during the month of September. In comparison to Kanpur market the variability in arrivals of onion in terms of co-efficient of variation was more pronounced, it was maximum per cent during the month of February and quite low per cent during the month of July. The average volume of onion received in Kanpur market was maximum quintal during the peak season month of June and lowest quintal during the off-season month of December. 236 Table 1 : Variability in market arrivals and whole sale prices of onion in selected markets Variability in market arrivals of onion Variability whole sale of onion Month Lucknow Kanpur Lucknow Kanpur Mean (Qtl.) C.V. (%) Mean (Qtl.) C.V. (%) Mean (Rs/Qtl.) C.V. (%) Mean (Rs/Qtl.) C.V. (%) January February ** March ** April May * * June ** ** * July * August September * * October ** November ** December * * ** ** Note: * lowest value and ** highest value

3 ECONOMIC STUDY OF BEHAVIOUR OF MARKET ARRIVALS & PRICES OF ONION, GARLIC & TURMERIC The extent of price variability of onion measured in terms of co-efficient of variation, in Lucknow market it was maximum per cent during the month of December and quite low per cent during the month of June. The average prices of onion in Lucknow market was highest Rs per quintal during the off-season month of October and lowest Rs per quintal during the peak season month of May. In comparison to Kanpur market the variability in prices of onion in terms of co-efficient of variation was more pronounced, it was maximum per cent during the month of December and quite low per cent during the month of September. The average prices of onion in Kanpur market was maximum Rs per quintal during the off-season month of November and lowest Rs per quintal during the peak season month of May (Murthy et al., 2008). Variability in market arrivals and prices of garlic : The market-wise analysis across the different months have been worked out in Table 2. The variability in market arrivals of Garlic in Lucknow market was maximum per cent during the month of December and lowest per cent during the month of March. The average volume of Garlic received in Lucknow market was highest quintal during the month of December and lowest quintal during the month of September. In comparison to Kanpur market the variability in arrivals of Garlic in terms of co-efficient of variation was more pronounced, it was maximum per cent during the month of June and quite low per cent during the month of February. The average volume of Garlic received in Kanpur market quintal during the peak season month of May and lowest quintal during the off-season month of November. The extent of price variability of Garlic measured in terms of co-efficient of variation, in Lucknow market it was maximum per cent during the off-season month of November and quite low per cent during the peak season month of June. The average prices of Garlic in Lucknow market was highest Rs per quintal during the off-season month of December and lowest Rs per quintal during the start peak season month of April. In comparison to Kanpur market the variability in prices of Garlic in terms of co-efficient of variation was more pronounced, it was maximum per cent during the off-season Month of November and quite low per cent during the peak season month of June. The average prices of Garlic in Kanpur market was maximum Rs per quintal during the off-season month of December and lowest Rs per quintal during the start peak season month of April (Shiyani et al., 1999). Variability in market arrivals and prices of turmeric : The market-wise analysis across the different months have been worked out in Table 3. The variability in market arrivals of Turmeric in Lucknow market was maximum per cent during the month of September and quite low per cent during the month of January. The average volume of Turmeric received in Lucknow market was highest quintal during the month of May and lowest quintal during the month of October. In comparison to Kanpur market the variability in arrivals of Turmeric in terms of co-efficient of variation was more pronounced, it was maximum per cent during the month of May and quite low per cent during the month of April. The average volume of Turmeric received in Kanpur market was maximum quintal during the month of March and lowest quintal during the month of December. The extent of prices variability of Turmeric measured in terms of co-efficient of variation, in Lucknow market it was maximum per cent during the month of December and quite low per cent during the month of March. The average Table 2 : Variability in market arrivals and whole sale prices of garlic in selected markets Variability in market arrivals of garlic Variability whole sale of garlic Month Lucknow Kanpur Lucknow Kanpur Mean (Qtl.) C.V. (%) Mean (Qtl.) C.V. (%) Mean (Rs/Qtl.) C.V. (%) Mean (Rs/Qtl.) C.V. (%) January February * March * April * * May ** June ** * * July August September * October November * ** ** December ** ** ** ** Note: * lowest value and ** highest value 237

4 DIWAKER NATH SHUKLA AND J. RAI prices of Turmeric in Lucknow market was highest Rs per quintal during the month of October and lowest Rs per quintal during the month of March. In comparison to Kanpur market the variability in prices of Turmeric in terms of co-efficient of variation was more pronounced, it was maximum per cent during the month of August and quite low per cent during the month of January. The average prices of Turmeric in Kanpur market was maximum Rs per quintal during the month of November and lowest Rs per quintal during the month of May (Janardhan, 1982 and Mane Table 3 : Variability in market arrivals and whole sale prices of turmeric in selected markets Variability in market arrivals of turmeric Variability whole sale of turmeric Month Lucknow Kanpur Lucknow Kanpur Mean (Qtt.) C.V. (%) Mean (Qtt.) C.V. (%) Mean (Rs/Qtt) C.V. (%) Mean (Rs/Qtt) C.V. (%) January * * February March * 28.45* April ** 23.83* May ** ** * June July August ** September ** October * ** November ** December * ** Note: * lowest value and ** highest value Table 4 : Relationship between market arrivals and whole sale prices of selected crops in selected market of U.P correlation Coefficient Lucknow Kanpur Year/Month Onion Garlic Turmeric Onion Garlic Turmeric * ** * * ** * *** ** * January * February * March * April ** * May *** June * July *** * August ** ** ** September October November * December * *** Note : * Significant at 0.05p, ** Significant at 0.01p, *** Significant at 0.001p. 238

5 ECONOMIC STUDY OF BEHAVIOUR OF MARKET ARRIVALS & PRICES OF ONION, GARLIC & TURMERIC et al., 2011). Relationship between market arrivals and prices : The relationship between market arrivals and prices of onion, garlic and turmeric in Lucknow and Kanpur market have been worked out in Table 4. Relationship between market arrivals and prices in Lucknow: The relationship between market arrivals and prices in Lucknow market, a statistically negative relationship was noticed for most of the years in onion and garlic, while in turmeric only three year i.e. 2004, 2006 and 2009 was found negative relationship between market arrivals and prices. The positive relationship found only one year during 2001 for onion and garlic, wherever, for turmeric seven years out of ten years over the study period. The correlation co-efficient for onion was observed statistically significant in 2005 and in 2010 while for garlic 2005 and 2008 was found significant but correlation co-efficient for turmeric was found non-significant in almost all the years. In onion the highest negative correlation co-efficients ( ) was found during 2010 while in garlic ( ) in 2008 and in turmeric ( ) in 2009, respectively. The month-wise correlation co-efficients between arrivals and prices, in onion was observed positive about ten months while in garlic eight months were found positive relationship but in case of turmeric only five months were found positive relationship. The negative relationship between market arrivals and prices in onion were found two months (January and October) but in garlic only four months (August, September, November and December) and incase of turmeric seven months were found negative relationship. In onion relationship was observed positively significant for eight months, while in garlic for two months (August and December) and incase of turmeric relationship was observed positively significant for March and negatively significant for August and December (Acharya and Agarwal, 1987). Relationship between market arrivals and prices in Kanpur : The relationship between market arrivals and prices in Kanpur market was observed negative for almost all the years in onion and garlic and eight years except two year (2001 and 2007) in turmeric. The correlation co-efficient for onion was observed negatively significant during 2004 and 2006 but for garlic only one year 2010 was found negatively significant while it was also negatively significant for turmeric during 2003 and In onion the highest negative correlation co-efficients ( ) was found in 2006 while in garlic ( ) in 2010 and in turmeric ( ) in 2008, respectively. The month-wise correlation co-efficients between arrivals and prices in Kanpur market was noticed negative during most of the months. In onion the correlation co-efficient was found negative for six months but in case of garlic it was negative for nine months and in turmeric correlation co-efficient was negative for eight months out of twelve months. The significant positive relationship of onion and turmeric was found in month of January and April, respectively while in case of garlic relationship was found negatively significant during July and August. The positive correlation co-efficient was observed in case of onion for six months while in case of garlic for three months (January to March) and in case of turmeric for two months (February and May). Supporting findings were made by Inamdar and Diskalkar (1987), Lohar (1991), Mane (1979), Pothula (1987), Prasad et al. (1989), Waiwal (1991), Perumal and Mohan(2004). Conclusion : The study has concluded that the extent of variability in market arrival of onion was lower in Lucknow market but higher in Kanpur market. Its prices variability was lower in Kanpur market and higher in Lucknow market. In case of garlic, the variability in market arrivals and prices was lower in Kanpur market but higher in Lucknow market. In case of turmeric, the variability in market arrivals and prices was lower in Lucknow market but higher in Kanpur market. The study has confirmed the negative relationship between market arrivals prices of onion, garlic and turmeric over the years in all two markets. However, across different months, there have been several instances of positive relationship between market arrivals and prices in Lucknow and Kanpur market. Authors affiliations: J. Rai, Department of Agricultural Economics and Statistics, C.S. Azad University of Agriculture and Technology, KANPUR (U.P.) INDIA LITERATURE CITED Acharya, S.S. and Agarwal, N.L. (1987). Agricultural marketing in India. Oxford & IBH, New Delhi (INDIA). Anoymous (2010). Post harvest losses in fruits and vegetables, ICAR study. Inamdar, K.S. and Diskalkar, P.D. (1987). Turmeric its cultivation and marketing in Sangli district. J. Maharashtra agric. Univ., 12 (2): Janardhan, J. (1982). An analysis of prices and arrivals of turmeric in Nizamabad (A.P.) regulated market. Indian J. Agric. Mktg., 12(7): Kumar, V., Sharma, H.R. and Singh, K. (2005). Behaviour of market arrivals and prices of selected vegetable crop: A study of four metropolitan markets. Agric. Econ. Res. Rev., 80 : Lohar, N.S. (1991). Marketing of turmeric in Western Maharashtra. Indian J. agric. Mktg., 5 (2): Mane, J.N. (1979). Economics of turmeric in Maharashtra. M.Sc. (Ag.) Thesis, Marathwada Agricultural University, PARBHANI, M.S. (INDIA). 239

6 DIWAKER NATH SHUKLA AND J. RAI Mane, U.S., Changule, R.B., Kolekar, P.L. and Gharge, S.H. (2011). An economic analysis of turmeric arrivals and price behaviour in Sangli district of Maharashtra. Internat. J. Comm. & Busi. Mgmt., 4 (2): Murthy, C., Wader, L.K., Mahajanshetti, S.B. and Bharamgouda, T.D. (2008). Spatial and temporal price variation of onion in Karnataka. Agric. Situ. India, 65 (4): Prasad, Y.A., Murthy, C.S. and Satyanarayan, G. (1989). An analysis of arrival and prices of turmeric in Guntur district. Indian J. agric. Mktg., 3 (1): Perumal, M. and Mohan, P.S. (2004). Onion production and market 5t h Year of Excellence arrivals in Dindigal onion Market, Tamil Nadu. Agric. Mktg., 57 (2) : Pothula, A.S. (1987). Economics of turmeric cultivation in Nizamabad district. M.Sc. (Ag.) Thesis, Marathwada Agricultural University, PARBHANI, M.S. (INDIA). Shiyani, R.L., Kakadia, B.H, and Pandya, H.R. (1999). Time Series analysis of arrivals and prices of garlic in Regulated Markets of Saurashtra. Indian J. Agric. Mktg, 13 (2): Waiwal, V.D. (1991). Economics of production and marketing of turmeric in Marathwada region. M.Sc. (Ag.) Thesis, Marathwada Agricultural University, PARBHANI, M.S. (INDIA). 240

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