Understanding regional variation in fish prices: evidence from a developing economy
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 12 May 2020
Issue publication date: 29 July 2020
Abstract
Purpose
This paper examines the prices of fishery products (an important source of protein for the poor) and drivers of their inter-regional variations in India, where fishery is a critical sector. By explaining regional price differences, we make an attempt to derive policy implications as to how fish price inflation can be controlled.
Design/methodology/approach
The paper is primarily based on secondary data provided by the Ministry of Agriculture, Government of India. In the absence of data on inter-regional trade, appropriate indicators are constructed using the gravity model to capture supply side factors that may influence regional price differences. Pooled regressions are carried out for a representative marine and an aquaculture fish variety separately for the period 2011 to 2017.
Findings
After controlling for income levels, it is found that marine fish prices can be reduced by improving intra-state transport infrastructure. For reducing the price of aquacultures, it is shown that it is imperative to reduce the distance between producers and consumers.
Research limitations/implications
The study is limited by the availability of data on interstate trade and consumption of fish and has only used prices of representative fish varieties instead of average marine and aquaculture fish prices.
Originality/value
This paper considers trade and value chain based business theories to explain regional price differences. It analyzes the drivers of relative price differences and suggests measures to control them using a gravity model of trade.
Keywords
Acknowledgements
This research was carried out with funding from the Norwegian Research Council, Norway through NUPI, Oslo (Project No. 233836). We thank Arne Melchior for his continuous support. We also gratefully acknowledge the support extended by RBI and ICSSR to ISEC.
Citation
Rajeev, M. and Nagendran, P. (2020), "Understanding regional variation in fish prices: evidence from a developing economy", Journal of Agribusiness in Developing and Emerging Economies, Vol. 10 No. 4, pp. 475-492. https://doi.org/10.1108/JADEE-09-2019-0158
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited