Market integration and price transmission in Indian shrimp exports

Time series weekly pricesof Indian shrimp during the period 2007-08 to 2016-17 were analyzed to understand price transmission in trade. Johansen's tests revealed cointegration between export and import prices of frozen shrimp to the American and Japanese markets from India.Joint F-testshowedasymmetric price transmission for only export price of Penaeus monodon (larger size)to import price of P. monodon (larger size), while import prices of P. monodon (smaller size),P. vannamei (larger size)and P. vannamei (smaller size)to Japan were found to be symmetric. Price transmission to USA were found to symmetric except for export price of P. monodon (LS)to import price of P. monodon (LS), while import price of P. monodon (SS), P. vannameiof larger and smaller sizes were found to be asymmetric.Increase in export prices led to rapid decline in imports while decline in export prices resulted inrelativelyslower increase in imports. Price adjustment to equilibrium was faster in USA than Japanese market. The study found that Indian frozen shrimp prices were well integrated among the countries viz. India, USA and Japan. But reasons for asymmetric price transmission in India's shrimp export markets may be attributed to lack of uniformity in supply, weak infrastructure, price information gaps, the operation of numerous traders in the existing marketing system. Structural imbalances in trade arising from foreign trade policy, in-ternational financial markets and supply chain inefficiencies need to be ironed out.