Abstract
India being an agricultural economy, agricultural commodities play a very important role. The commodity derivative market was started a way long back in 1874 in India but it regained its importance only from 2000 and within the span of a short time it has gained its importance in price discovery, hedging and arbitrage process. An efficient commodity futures market attracts a number of investors in the futures market. At this juncture, there are many complications related to price signals, volatility spillovers and price discovery in the spot and futures of Indian commodity market. The present study examines the price discovery of agricultural commodities traded in the NCDEX with reference to the spot prices and future prices of jeera and mustard seeds for the period of January 2020 to December 2021. The study investigates the integration between spot and future price through Johnson integration test and the causal relationship whether they have a bidirectional or unidirectional relationship by using Granger Causality Test.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ahuja NL (2006) Commodity derivatives market in India: development, regulation and futures prospective. Int Res J Finance Econ 1(2)
Kaur HP, Anjum DB (2013) Commodity derivatives market in India. Int Res J Bus Manag IRJBM 5. ISSN No: 2322–083X
Madhavi A, Chalam GV (2017) Performance evaluation of commodity derivatives exchanges in india. Int J Res Commerce Econ Manag 7(3). ISSN 2231–4245
Mengyuan Q (2015) An empirical study on the relationship between corn futures prices of China and the United States. J Int Stud 8(3):191. https://doi.org/10.14254/2071-8330.2015/8-3/15
Nirmala K and Swarna C (2017) Examining the relationship between spot and future price of crude Oil, Kaav Int J Econ Commerce Bus Manag 4:309–314. ISSN 2348–4969
Nirmala K, Munilakshmi R, Sandhya V (2015) Price discovery in commodity markets: a study of Indian cardamom market in multi commodity. Indian J Account XLVII (1) ISSN-0972–1479
Palaniappan Shanmugam V, Raghu RR (2016) Relationship between spot and futures markets of selected agricultural commodities in India. J Bus Financ Aff 5:1. https://doi.org/10.4172/2167-0234.1000160
Samal GP (2017) Price discovery efficiency of cotton futures market in India. Agric Econ Res
Vasantha G and Mallikarjunappa T (2015) Lead-lag relationship and price discovery in indian commodity derivatives and spot market: an example of pepper. IUP J Appl Finan 21(1)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kumar, M.D., Thomas, C. (2023). A Study on Price Discovery of Jeera and Mustard Seeds Sustainable Trading in NCDEX. In: Edward J., A., Jaheer Mukthar, K.P., Dhruvakumar, M., Murugesan, T.K. (eds) Digital Transformation for Business Sustainability. Contributions to Environmental Sciences & Innovative Business Technology. Springer, Singapore. https://doi.org/10.1007/978-981-99-7058-2_16
Download citation
DOI: https://doi.org/10.1007/978-981-99-7058-2_16
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-99-7057-5
Online ISBN: 978-981-99-7058-2
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)