Price Analysis and Market Integration of Onion Prices in Selected Markets of Maharashtra

Abstract:

Onion is an important vegetable crop of Maharashtra and its prices and arrivals show considerable variation over time. The present study was undertaken to study the seasonal and cyclical variations in onion prices and arrivals and to assess the co-integration among selected onion markets of Maharashtra. Four major markets, namely Ahilyanagar, Lasalgaon, Nagpur and Pune, were selected for the study. The study was based on secondary monthly data on onion prices and arrivals for the period 2005 to 2025. Seasonal indices were estimated using the ratio-to-moving-average method, while cyclical indices were used to examine year-to-year fluctuations. Market integration was examined using the Johansen co-integration test. The results showed a clear seasonal pattern in onion prices in all the selected markets. Price indices were generally higher during August to December and lower during April and May. The highest seasonal price indices were recorded during November in Ahilyanagar, Lasalgaon, Pune and Nagpur. Seasonal variation was also observed in arrivals, with different peak arrival periods across the selected markets. The cyclical analysis showed considerable year-to-year variation in both prices and arrivals. The Johansen co-integration test confirmed the existence of a long-run equilibrium relationship among the selected onion markets. Better storage, market information and coordinated marketing are suggested to reduce the effect of seasonal price fluctuations and improve market efficiency.