Effectiveness of Pricing in an Indian Wheat Market: A Case Study of Khanna, Punjab

An important issue in food grain marketing in India concerns the effectiveness of competition, but there is little empirical research on which to evaluate the issue. This article analyzes pricing effectiveness in one private wholesale wheat market in north India by comparing average seasonal and spatial price differences with estimated storage and transport costs. The comparisons indicate that correspondence between average price movements and average cost differences was reasonably close.