Inter-Market and Seasonal Variation in Price: An Appraisal of Maize Marketing in Kwara State.

Abstract

This study investigated inter-market and seasonal variation in prices of maize in Kwara State. Secondary time series data on average monthly retail price of maize in urban and rural markets between 1998 and 2003 were used for the study. Primary data on the average storage cost of maize and the average selling price of maize for 2004 were also used for the study. The study described the seasonal pattern of maize, examined its seasonal price rise and analyzed the inter-market variation in prices of maize in the study area.
The study revealed that the seasonal price rise exceeds storage cost but the difference is minimal. The effect of kilometer separation between market- pairs on their Price difference is significant (p < 0.05). Thus, if storage cost should be reduced the inter-market price variation will be reduced while transportation cost should also be reduced to facilitate the movement of food commodities between markets.

Keywords: Inter-market, Price difference, Seasonal, Variation, and Maize.

Agrosearch Vol. 7 (1&2) 2005: pp. 51-61