Market integration of sesame seeds in South Asia

Abstract

The present research empirically determined the spatial price linkage of South-Asia exporting sesame seeds markets with the importing market using annual producer’s price sourced from FAO database. The analytical techniques used to achieve the stated objective were descriptive and inferential statistics. The empirical findings showed that the selected markets were not autarkic as price information was efficiently transmitted across the geographical far apart markets. Furthermore, the traders effectively responded to price innovation or shock in order to maintain price equilibrium in their respective markets. Evidence showed that hike in lowquality prices would be relatively less reflected in Bangladesh and Pakistan markets. Thus, the study recommended network design for sesame producer’s markets across the region at an almost equal distance from each other to enhance integration and better price communication among the exporting and importing economies.