Analysis of Spatial Cointegration amongst Major Wholesale Egg Markets in India

The performance of egg market has been studied through measurement of oneness in the egg markets. For this purpose, the Engle-Granger Cointegration test procedure has been applied to egg price series for major wholesale egg markets in the country, viz. Nammakal (Tamil Nadu), Calcutta, Chennai, Bangalore, Delhi and Hyderabad for the period 1982 to 2000. The study has indicated that the six major wholesale egg markets in the country are cointegrated apparently due to performance of market intelligence functions by the National Egg Coordination Committee (NECC) which helps in transmitting price signals across the length and breadth of the country through print media on day-to-day basis. The high degree of cointegration amongst various markets indicates that these markets are competitive and efficient at the wholesale levels. However, it still remains to be examined whether the poultry farmers and traders at the grass-root level are able to realize the prices declared by the NECC