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Market integration and price transmission in India

a case of rice and wheat with special reference to the world food crisis of 2007/08










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    Technical study
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    2025
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    This study examines the evolution of domestic cereal prices in the low- and middle-income countries (LICs and MICs) from 2017 to mid-2023, covering the shocks of the COVID-19 pandemic and the war in Ukraine. Using monthly retail price data adjusted by the consumer price index (CPI), we analyse cross-country and regional trends. Results indicate that Latin America and the Caribbean is more sensitive to international price fluctuations, whereas regions such as Asia – especially China and India – exhibit greater stability, largely due to effective agricultural policies and robust domestic production. These findings underscore the need for targeted agricultural and food policies to bolster food security and resilience in LICs and MICs, ultimately contributing to a better life.
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    Bulletin
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    Global wheat export prices stabilized in April 2024 after declining for three consecutive months, while maize prices increased month‑on-month. International rice prices declined by 1.8 percent in April, largely due to harvest pressure. In most countries monitored by FAO, staple food prices remained at historically high levels in March and April 2024. In many countries, macroeconomic difficulties and high food distribution costs continue to drive elevated prices of both domestically produced and imported food commodities. In Haiti and parts of East and West Africa, protracted crisis situations have had a negative impact on food production and market functionality, resulting in high food prices. Weather-related shocks have reduced harvest prospects and placed upward pressure on maize prices in parts of Southern Africa and South America. By contrast, ample supplies and favourable harvest prospects led to declines in domestic wheat prices in parts of Eastern Europe, Caucasus and Central Asia, and Far East Asia.
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    Journal article
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    Food Security, August 2019, Volume 11, Issue 4, pp 941–951
    2019
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    Much attention has been devoted in the literature to the analysis of price transmission along food supply chains. Price transmission analysis has traditionally focused on applying econometric methods to assess price dynamics and interrelationships. However, the exclusive application of econometric methods without considering the market’s institutional context has limited potential to support evidence-based policy-making. In recent years, studies have thus attempted to combine the use of quantitative and qualitative methods to better understand the level of performance of food value chains. This study contributes to broadening these empirical toolkits by suggesting a structured analytical framework that benefits from the simultaneous application of econometric and market-structure methods in price transmission analysis. To illustrate the application of the framework, we analyze the milk market of Panama.

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