Vol. 5 (6) : November-December 2014 issue
Green Farming Vol. 5 (6) : 1117-1121 ; November-December, 2014
Behavior of arabica coffee prices in international and Indian markets
N. ASHOKAa1*, BALACHANDRA K. NAIKb2 and VILAS S. KULKARNIb3
aDeptt. of Agricultural Economics, College of Horticulture, Munirabad - 583 233 (Karnataka)
bDeptt. of Agribusiness Management, College of Agriculture, Dharwad - 580 005 (Karnataka)
Designation : 1,3Asstt. Professor *(ashokan.abm@gmail.com), 2Professor
Subject : Agriculture Economics, Agri-Business, Marketing & Statistics, Farm Management
Paper No. : P-1521
Total Pages : 4
Received : 23 February 2014
Revised accepted : 03 November 2014
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Citation :
N. ASHOKA, BALACHANDRA K. NAIK and VILAS S. KULKARNI. 2014. Behavior of arabica coffee prices in international and Indian markets. Green Farming Vol. 5 (6) : 1117-1121 ; November-December, 2014
ABSTRACT
The linear trend analysis of monthly prices of Arabica coffee in international and domestic markets revealed increasing trend in all the markets studied. However, analysis of coefficient of variation indicates higher instability in price series. The performance of Arabica coffee markets has been studied through measurement of oneness in the Arabica coffee prices. For this purpose, Co-integration test procedure has been applied to monthly prices of Arabica coffee for major international and domestic Arabica coffee markets, viz., ICO, New York futures and ICTA Bangalore for the period of January 2000 to December 2012. The study has indicated that Indian Arabica coffee prices are co-integrated with international prices apparently due to performance of market intelligence function by the Coffee Board of India, Bangalore which helps in transmitting the price signals to ICTA Bangalore. Highest degree of co-integration among these markets indicates that these markets are competitive and efficient at the auction level.
Key words :
Arabica coffee prices, Co-integration, ICO, ICTA, New York future.
