Price Analysis of Turmeric for Major Markets of Maharashtra

India is the largest producer consumer and exporter of spices in the world. The global production of turmeric is about 11 lakh tons. Indian turmeric industry contributes about 78 per cent of world production and 60 per cent of the exports of Turmeric. In India Turmeric is cultivated in 8.09 ha with the production of 13.52 lakh tonnes. Total area under Turmeric in India rose gradually from 1.10 lakh ha in 1990-91 to 1.94 lakh ha in 2009-10. Huge fluctuations in prices of farm produce were observed during past few years. The present study aimed to study the price movement of Turmeric i.e. seasonal and cyclical variations price volatility and co-integration among the major Turmeric markets of Maharashtra viz. Sangli Hingoli Basmat and Nanded. For study purpose the data related to monthly average prices and arrivals of Turmeric were collected from major markets of Maharashtra for the period 2004-2015. Moving average method was used to estimate seasonal variations and Residual Method for cyclical variations. The econometric tools like ADF test Johansen’s Multiple Co-integration test Pair-wise Granger Causality Test ARCH-GARCH Vector Error Correction models and for forecasting th