Analysis of Seasonal price Variatin of Rice in India
- 1Department of Agricultural Economics, UAS, Raichur, Karnataka, India
- 2Department of Agricultural Economics, UAS, Raichur, Karnataka, India
- 3Department of Agricultural Economics, UAS, Raichur, Karnataka, India
- 4Department of Agronomy, UAS, Raichur, Karnataka State, India
Res. J. Agriculture & Forestry Sci., Volume 4, Issue (6), Pages 1-6, June,8 (2016)
The study was conducted to describe the price variations in price of rice in India using monthly prices of rice for a period of ten years (2004 – 2014). The result of the Grand Seasonal Index which represents the typical seasonal behavior of time series of the 12 calendar months for rice prices in India showed a deviation from hundred (Table 1), meaning that seasonality existed in the country. Grand seasonal index for January (2004–14) in India was found to be 96.57 which means that the price in India on an average is 3.43 per cent lower than the average of the entire period as whole. However, the result further revealed coefficients of variation of the domestic price of rice to be higher in the years 2004, to 2009, as well as 2013 and 2014 and lowest coefficients of variation were recorded in the years 2010 to 2012 thus, these was as a result of the higher price variations of rice in the country between the harvest and the lean periods. This means that in India, the law of demand applied wherein, prices fall during the harvest season and rises during the lean period. However, findings of this study showed that seasonality of rice is one of the major causes of variation in prices in India hence to reduce the seasonal price fluctuations, it is therefore recommended that, government of India should ensure strict adherence to ceiling and floor price so as to limit the speculative practices in the markets.
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