• Deepthy.K

The aim of the study was to investigate the cointegration and causality between spot and futures market of raw jute market traded in NMCE during the period 01/01/2016 to 31/03/2018 using various econometric tools. The Johansen’s cointegration test is used to analyse the cointegration relationship between the markets. The results reveal that both markets are co integrated in the long run. The causality between the markets was analysed using Granger causality test. The results reveal that there is a bi directional causality relationship between future and spot markets of raw jute. The study suggests that the farmers, traders, producers and policy makers should maximum prudence while investing in futures market and they should watch the spot prices vigilantly as the error correction model reveals that price changes are first reflected in spot market, which is then reflected in futures market.

Econometric tools, Cointegration, Causality, Commodity Market

"Econometric analysis of cointegration and causality between agricultural spot and futures market in India: A case study of Raw Jute market in India.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.59-67, June-2019, Available :http://www.jetir.org/papers/JETIR1906447.pdf

"Econometric analysis of cointegration and causality between agricultural spot and futures market in India: A case study of Raw Jute market in India.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp59-67, June-2019, Available at : http://www.jetir.org/papers/JETIR1906447.pdf