Abstract

Maize is an important staple food in many countries and its acreage is on the increase continuously at global level. In India maize is mainly used to manufacture poultry feed. Higher marketing efficiency in maize markets would technically imply that all the major markets are integrated and also the changes in the prices of final products, viz., egg and chicken closely reflect the prices of major inputs raw material viz., maize. The price linkages between maize and poultry products are studied through co-integration and Vector Error Correction Model approach. Price transmission is observed across maize to poultry products. The results proved that maize markets in India are integrated over space and form implying higher order of marketing efficiency. Hence achieving the production target of 42 million tonnes of maize in India is not a difficult task provided policies are conducive and bird flu does not occur in our nation.

Keywords: Price transmission, Market Integration, maizem poultry, VECM.