Spatial Market Integration among the Major Robusta Coffee Growing Regions in India: An Econometric Analysis

Coffee occupies a prime position among the plantation crops in India and it is one of the key contributors to the Indian foreign exchange earnings. The price integration among the different markets indicates the interdependence of prices and speed of a price transmission between different markets. located in various regions. The present study examined the movement of Robusta farm gate coffee prices, transmission of price signals and information across the major Robusta coffee producing regions of the country. The study revealed that, the farm gate coffee prices in major Robusta producing regions were well co-integrated with each other, which shows that Robusta coffee prices were transmitted from one region to the other, and also moving together in the long-run, that indicates the existence of transparent price discovery, dissemination and risk transfer among the markets in major Robusta coffee producing regions in India.