Spatial price integration and price transmission among major fish markets in India

The domestic fish marketing system in India deserves to be developed into a strong network ofefficiently functioning markets, as more than three-fourths of the country’s total fish production ischannellised domestically. With the unleashing of a new global economic order, the efficiency ofmarkets needs to be dealt with utmost importance. The degree of spatial market integration and pricetransmission between the major coastal markets in India have been reported using monthly retailprice data on important marine fish species. It has been observed that degree of integration and rate ofprice transmission differ according to species. The highest integration has been observed in mackerel,probably because of its affordability to all income classes, resulting in a wide consumer base. Amongvarious markets, a near full transmission of prices has been observed between Kerala and Tamil Nadumarkets, except in the case of shrimp. Even though a major landing centre, the price movement inMaharashtra market has been found independent of other markets. The spatial market integrationbetween major shrimp markets in the country has appeared to be the least, possibly because of itsgreater market share outside the country. The study has suggested to devise strategies to bring aboutgreater integration between these markets so that both fishermen and the fish-consuming communityin the country are benefitted.