IMPACT OF INTRODUCTION OF FUTURES TRADING ON SPOT PRICES IN THE STATE OF RAJASTHAN

摘要

This investigation is an attempt to study the impact of introduction of futures trading on spot prices of mustard seed, guar seed and gram seed at Bikaner Commodity Exchange Ltd., Bikaner. Impact of future trading on spot prices was cultured by employing dummy variable technique. Integration among future and spot markets was studied by computing simple correlation between prices. The study results revealed that future prices of mustard tended to reduce the rate of change in the spot prices of crop inthe future period. In case of gram, future prices of gram caused the rate of change its gram spot prices to increase in the future period. The estimated regression for guar seed for the overall period revealed that the future prices of guar reduced therate of the change in its spot prices during the future period. It was observed that the two markets were highly integrated for mustard, guar and gram. The degree of integration was 0.9140, 0.9368 and 0.5919 for mustard seed, guar seed and gram seed, respectively.