PRICE STABILITY AND SHALLOT MARKET INTEGRATION IN CENTRAL JAVA

Muhammad Luthfie Fadhilah; Anna Fariyanti; Ratna Winardi Asmarantaka

doi:10.14710/agrisocionomics.v7i1.16314

DOI: https://doi.org/10.14710/agrisocionomics.v7i1.16314

PRICE STABILITY AND SHALLOT MARKET INTEGRATION IN CENTRAL JAVA

*Muhammad Luthfie Fadhilah

- Graduate School, IPB University, Bogor, Indonesia, Indonesia

Anna Fariyanti - Faculty of Economics and Management, IPB University, Bogor, Indonesia, Indonesia

Ratna Winardi Asmarantaka - Faculty of Economics and Management, IPB University, Bogor, Indonesia, Indonesia

BibTex Citation Data :

@article{Agrisocionomics16314,
    author = {Muhammad Fadhilah and Anna Fariyanti and Ratna Asmarantaka},
    title = {PRICE STABILITY AND SHALLOT MARKET INTEGRATION IN CENTRAL JAVA},
    journal = {Agrisocionomics: Jurnal Sosial Ekonomi Pertanian},
  volume = {7},
    number = {1},
    year = {2023},
    keywords = {price, stability, market, integration, shallot},
    abstract = {    The COVID-19 virus is causing economic shocks. If there is no balance of demand and supply, the impact will result in price instability and price integration. Shallot (Allium ascalonicum) is an essential commodity in Indonesia that will impact inflation. Central Java is the largest national producer, and the impact that will be caused will be huge for the national shallot trade. Price fluctuations and integration in Central Java will have an impact due to many farmers and marketing actors involved in the shallot trade. The study aimed to analyze the stability of shallot in Central Java and analyze vertical and horizontal market integration. The methods used are The Coefficient of Variation and VAR/VECM. The results of research on producer prices and consumer prices in the time before and during pandemics are classified as high volume. Although producer prices have decreased volatility (19.73 to 18.43), consumer prices have increased (19.64 to 21.12). On vertical integration, in the long run, only the price of producers with retail traders and large swords with retail traders experience integration. While in the short term, there is only a producer-price relationship affecting the price of retail traders in Central Java which is harmful. The horizontal integration between Jakarta Karamatjati Market, Bandung Kosambi Market, Johar Semarang Market, and Bringharjo Market Yogyakarta experienced long and short-term integration. Johar Semarang Market is influenced by all three markets and only affects Yogyakarta Beringharjo Market.    },
   issn = {2621-9778},   pages = {114--125}  doi = {10.14710/agrisocionomics.v7i1.16314},
    url = {https://ejournal2.undip.ac.id/index.php/agrisocionomics/article/view/16314}
}

Citation Format:

Abstract

The COVID-19 virus is causing economic shocks. If there is no balance of demand and supply, the impact will result in price instability and price integration. Shallot (Allium ascalonicum) is an essential commodity in Indonesia that will impact inflation. Central Java is the largest national producer, and the impact that will be caused will be huge for the national shallot trade. Price fluctuations and integration in Central Java will have an impact due to many farmers and marketing actors involved in the shallot trade. The study aimed to analyze the stability of shallot in Central Java and analyze vertical and horizontal market integration. The methods used are The Coefficient of Variation and VAR/VECM. The results of research on producer prices and consumer prices in the time before and during pandemics are classified as high volume. Although producer prices have decreased volatility (19.73 to 18.43), consumer prices have increased (19.64 to 21.12). On vertical integration, in the long run, only the price of producers with retail traders and large swords with retail traders experience integration. While in the short term, there is only a producer-price relationship affecting the price of retail traders in Central Java which is harmful. The horizontal integration between Jakarta Karamatjati Market, Bandung Kosambi Market, Johar Semarang Market, and Bringharjo Market Yogyakarta experienced long and short-term integration. Johar Semarang Market is influenced by all three markets and only affects Yogyakarta Beringharjo Market.

Fulltext View|Download

Keywords: price, stability, market, integration, shallot

Funding: Not

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 7, No 1 (2023): March 2023

Recent articles

COMPARATIVE STUDY BETWEEN CONVENTIONAL AND CONSERVATION TILLAGE SYSTEM OF CORN CULTIVATION IN NGANJUK REGENCY, EAST JAVA PROVINCE OF INDONESIA FOOD SECURITY POLICY ANALYSIS PERPECTIVE ON FOOD SELF-SUFFICIENCY VILLAGE PROGRAMME CASE IN CENTRAL JAVA INDONESIA RELATIONSHIP BETWEEN THE ROLE OF WOMEN FARMER GROUP AND FARMER CHARACTERISTICS WITH MEMBER INCOME (CASE OF SRI KANDI WOMEN FARMER GROUP IN SUKRA DISTRICT, INDRAMAYU REGENCY) More recent articles

Anindita, R. 2004. Marketing of Agricultural Products. Papyrus. Surabaya
Asmarantaka RW. 2014. Agribusiness Marketing (Agrimarketing). Second printing. Bogor. Publisher PT IPB Press
Central Bureau of Statistics. 2019. Horticultural Statistics 2018. Jakarta: Central Statistics Agency
Central Bureau of Statistics. 2020. Horticultural Statistics 2019. Jakarta: Central Statistics Agency
Enders, Walter. (2004). Applied Econometric time series. 2nd. Ed. New York, John
Katrakilidis C. 2008. Testing for market integration and the Law of One Price: an application to selected European milk markets. Int J Econ Res. 5(1):93- 104
Kohls RL, Uhl JN. 2002. Marketing of Agricultural Products. Ninth Edition. Macmillan Publishing Co., Inc., New York
Kustiari R. 2017. Price behavior and market integration of shallots in Indonesia. Journal of Agro-Economics. 35(2):77–87. DOI: http://dx.doi.org/10.21082/jae.v35n2.2017.77-87
Magfiroh, Illia Seldon, R. Y. Rahman, I. K. Setyawati, dan A. Zainuddin. 2017. Respon Harga Produsen Terhadap Perubahan Harga Konsumen Bawang Merah di Indonesia. JSEP, 10(3): 7-15. https://doi.org/10.19184/jsep.v10i3.6481
Marwa T, Bashir A, Azwardi, Adam M, Thamrin KMH. 2017. Market integration of agricultural products. International Journal of Economics and Business Administration. 5(2):69-88. DOI: https://www.ijeba.com/journal/130
Nuraeni D, Anindita R, Syafrial. 2015. Analysis of price variations and market integration of shallots in West Answer. HABITAT. 26(3):163-172. DOI: https://doi.org/10.21776/ub.habitat.2015.026.3.19
Plaskas T and Harris B, 1991. Testing market integration: new approaches with case material from the west Bengal food economy. Journal of Development Studies 30(1):1-57. DOI: http://dx.doi.org/10.1080/00220389308422304
Prastowo NJ, Yanuarti T, Depari, Y. 2008. Effect of distribution in the formation of commodity prices and its implications for inflation. Working Papers. Bank Indonesia
Rohmah A. 2020. The COVID-19 pandemic and its impact on consumer behavior in Indonesia. Journal of Research Innovation 1(7):1373–1378. DOI: https://doi.org/10.47492/jip.v1i7
Siche R. 2020. What is the impact of COVID-19 disease on agriculture? Scienta Agropecuria. 11(1)1–9. http://dx.doi.org/10.17268/sci.agropecu.2020.01.00
Sholihah S, Karsinah, K. 2020. Integration of Central, East, West Java, and Jakarta Shallot Market. Economics Development Analysis Journal, 8(4 SE-Articles). https://doi.org/10.15294/edaj.v8i4.35276
Stephens EC, Martin G, Wijk Mv, Timsina J. Snow V. 2020. Editorial: Impacts of COVID-19 on agricultural and food systems worldwide and on progress to the sustainable development goals. Agricultural Systems. 183. https://doi.org/10.1016/j.agsy.2020.102873
TNAU (Tamil Nadu Agricultural University). 2017. Agricultural Marketing Trade and Price. Tamil Nadu
Vavra P, Goodwin BK. (2005). Analysis of price transmission along the food chain. Working Papers OECD Food Agriculture and Fisheries. OECD Publishing. DOI: https://doi.org/10.1787/18156797
Widayawati LF. 2016 The marketing value chain of shallots in Brebes Regency, Central Java. Inovisi Journal 12(2):86-95 Doi: https://ejurnal.esaunggul.ac.id/index.php/inovisi/article/view/1920/1713

Last update:

No citation recorded.

Last update:

No citation recorded.

Starting from 2021, the author(s) whose article is published in the Agrisocionomics journal attain the copyright for their article. By submitting the manuscript to Agrisocionomics, the author(s) agree with this policy. No special document approval is required.

The author(s) guarantee that:

Their article is original, written by the mentioned author(s),
Has never been published before,
Does not contain statements that violate the law, and
Does not violate the rights of others, is subject to copyright held exclusively by the author(s), and is free from the rights of third parties, and that the necessary written permission to quote from other sources has been obtained by the author(s).

The author(s) retain all rights to the published work, such as (but not limited to) the following rights:

Copyright and other proprietary rights related to the article, such as patents,
The right to use the substance of the article in its own future works, including lectures and books,
The right to reproduce the article for its own purposes,
The right to archive all versions of the article, and
The right to enter into separate additional contractual arrangements for the non-exclusive distribution of published versions of the article (for example, posting them to institutional repositories or publishing them in a book), acknowledging its initial publication in this journal.

If the article was prepared jointly by more than one author, each author submitting the manuscript warrants that they have been given permission by all co-authors to agree to copyright and license notices (agreements) on their behalf, and agree to notify the co-authors of the terms of this policy. Agrisocionomics will not be held responsible for anything that may arise because of the writer's internal dispute. Agrisocionomics will only communicate with correspondence authors.

Authors should also understand that once published, their articles (and any additional files, including data sets, and analysis/computation data) will become publicly available. The license of published articles (and additional data) will be governed by the Creative Commons Attribution license as currently featured on the Creative Commons Attribution-ShareAlike 4.0 International License. Agrisocionomics allows users to copy, distribute, display and perform work under license. Users need to attribute the author(s) and Agrisocionomics to distribute works in journals and other publication media. Unless otherwise stated, the author(s) is a public entity as soon as the article is published.