Investigating Market Integration and Price Transmission

Rice production in most of asian countries has been increasedmore rapidly than population and this has been led to increasein supply and proportionately decrease in the real price of rice inworld and domestic markets. furthermore, together with growth inproduction and national gross income of the country per-capitaincome has been increased and also demand for rice at national andinternational level quality has been increased. in this case studyingthe market conditions of different qualities of rice including marketingmargins, causative relations among the prices, market integrations inlong term and finally price transferring and market integration inshort term is the important consequence that can help policymakersand planners in their decision makings on research, production, distributionand marketing of rice strategic product. so, using thestatistics from jihad agriculture organization of guilan province incase of the price of rice qualities (items) including sadri momtaz(s1), sadri darge yek (s2), sadri mamooli (s3) and khazar (k1)during 1999-2009 market conditions of different qualities of ricewas studied. results show that impulses in wholesale prices inkhazar rice rapidly influence on-farm prices, however, in case ofother rice qualities the rate and speed of this influence is low. but inwholesale-retail market for sadri quality rice impulses influencestrongly in wholesale price and this shows intense integration ofthese two rice markets in iran. it is suggested that according to thedifferent quality of rice verities, support policy design and decisionmaking process assigned separately.