Price Behaviour of Major Cereal Crops in Bangladesh

Abstract

The key concern of this research is to analyse the extent of the seasonal price fluctuation and spatial price relationship of major cereal crops viz., Boro paddy and wheat in different markets in Bangladesh. This study was entirely based on secondary data from the period of 1986-87 to 2009-10 from different sources. In estimating seasonal price fluctuation of selected crops it was found that crops prices fluctuated in different months within the year. The difference between peak and trough prices was higher for Boro paddy than wheat. Coefficient of variation was also higher for Boro paddy than wheat but these figures are decreasing gradually. The results of empirical evaluation of spatial price linkage through Engle-Granger co-integration method among regional selected markets of Bangladesh using harvest price of Boro paddy and wheat indicate that these markets were well integrated. That means, information about price changes are fully and instantaneously delivered to the other markets in Bangladesh. Price analysis and formation of policy at the aggregate level will be pertinent for policy implementation.

Keywords: Price behaviour, Cereal crops, Market integration, Unit root, Engle-Granger