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Abstract
India being the largest producer of cardamom stands second largest in exports after Guatemala. The major cardamom production in Western Ghats of South India, especially Kerala, Karnataka and Tamil Nadu were the major contributors. Among these states Kerala produces more cardamom. The cardamom prices are collected with the help of MCX website during 2013 to 2018. Econometric tools such as Unit root test, Johansen’s Cointegration (JC), Vector Error Correction Model (VECM), Breusch-Godfrey test, Cumulative Sum (CUSUM) and Granger Causality (GC) test were employed to find the flow of information and causality relationship between the cardamom spot and future daily prices. The Johansen’s cointegration result conforms that there is a long-run equilibrium among both spot and futures prices in cardamom commodity market. Granger causality test also reveals that futures market is efficient and this information leads to the spot.