Price Behaviour and Linkages: A Case Study on Potato

Potato (Solanum tuberosum L.), regarded as the “king of vegetables,” is India’s fourth most important food crop after rice, wheat, and maize, contributing significantly to nutritional security and farm income diversification. India, the world’s second-largest producer with 60.18 million tonnes (2024–25), accounts for ~16% of global output. Despite its strong production base, market integration and price volatility pose major challenges for farmers and consumers alike. This study investigates the spatial integration, price dynamics, and causality among four major potato markets—Agra, Amritsar, Bengaluru, and Chikkaballapura—using weekly wholesale price data from 2015 to 2025. Stationarity was examined through ADF, PP, and KPSS tests, while Johansen’s co-integration and Vector Error Correction Model (VECM) were employed to capture long-run equilibrium and short-run price adjustments. Results reveal significant co-integration among the selected markets, with Bengaluru prices responding strongly to Amritsar and Agra, while Chikkaballapura exhibited short-run corrections influenced by terminal markets. Granger causality analysis confirmed both uni- and bidirectional linkages, highlighting Bengaluru–Chikkaballapura interdependence. Findings underscore the necessity of robust cold storage, logistics, and market linkages to mitigate volatility and strengthen farmer incomes. Policy interventions, alongside technological innovations such as aeroponic seed systems, will be critical to ensure stable and sustainable growth of India’s potato sector.