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Abstract
The present study was conducted in Rajpura block of Patiala district in Punjab with a sample of 50
vegetables growers. The total cost of cultivation was estimated at Rs 49563/ha for onion and Rs 34840/ha
for cauliflower. The net returns were found higher for onion (Rs 74597/ha) as compared to that from
cauliflower (Rs 38072/ha). Majority of these vegetables were being disposed off through commission
agent/wholesaler (more than 90 per cent) followed by retailer and directly to the consumer. The efficiency
of the these market channels can be enhanced through competition by organized retail chains and modernizing
the vegetable market system in the state. The wholesale markets of Pune, Ludhiana and Patiala for onion
and that of Shimla, Ludhiana and Patiala for cauliflower have been found integrated with price of onion and
cauliflower transmitting quickly from the independent to the dependent markets. The highest elasticity of
price transmission in onion has been observed between Ludhiana and Patiala markets with almost 90 per
cent of the price change in Ludhiana getting transmitted to the Patiala market. Such transmission has been
100 per cent for cauliflower between Shimla and Patiala markets. The price transmission has been observed
faster in cauliflower than onion. Though a long-term equilibrium relationship exists between all the studied
markets in terms of weekly price of the two vegetables crops, there also exists a short-run disequilibrium
between some of the market pairs with almost 15 to 25 per cent of the fluctuations usually getting corrected
within a week. Greater integration in these markets may help the farmers as well as consumers of the
vegetables through better price signals.