Modelling Price Dynamics in Indian Potato Markets: A Comprehensive Econometric Approach

Potato, known for its superior nutritional value and adaptability to diverse climates, plays a vital role in India's food system, with significant economic and political relevance. However, its price volatility presents challenges for both producers and consumers. This study examines price transmission and market integration across 11 key potato markets in India, spanning Eastern (Puri, Hooghly), Western (Indore, Kota), Northern (Agra, Amritsar, Dehradun, Delhi, Sirsa), and Southern (Belgaum, Pune) regions. Using advanced econometric techniques, including the Johansen Cointegration Test, Vector Auto-regression (VAR), and Autoregressive Distributed Lag (ARDL) models, the study assesses long-term market relationships and short-term price dynamics. The findings indicate significant cointegration among regional markets, highlighting their interconnectedness. These insights are essential for optimizing resource allocation, improving supply chain resilience, and mitigating price volatility. The study offers actionable recommendations for farmers, policymakers, and supply chain stakeholders to enhance price stability and achieve more equitable market outcomes in India's potato sector.