An Analysis of Market Integration and Price Behavior of Vegetables: Major Vegetables of Hill Region of Nepal

Nepal is landlocked country situated in the southern slope of Himalayas in South Asia between China and India. Administratively, Nepal is divided into 5 development regions and ecologically into 3 regions(Terai, Hills and Mountains). Vegetable cultivation is important short seasonal and major crop enterprise of Nepalese agricultural system. There are 42 market centers for fruits and vegetables out of which 12 are wholesale markets. In the wake of commercialization of Nepalese agriculture there is a need to study the trade competitiveness and variation of price of vegetables for proper transmission of price signals among the markets that might facilitate producers' marketing decision and contribute to efficient product movements. The major policy implication is improved market information system to disseminate up to date and timely information on regular basis. Further, government is required to establish the institutions to collect and publish statistical data and to create market infrastructure facilities like warehousing, processing, transportation,etc in order to reduce the variation in prices of vegetables in the vegetable markets.