Increasing the productivity of shallot planting and its impact on the agricultural market, West Java

The main objective of this study is to increase the productivity of shallot planting and its impact on the agricultural
market. This study analyzes the transmission of shallot prices at the Caringin Main Market (wholesale) level with
shallot prices at the farmer (producer) level using quantitative analysis of the Asymmetric Error Correction Model
(AECM). The results showed that long-term transmission with positive ECT coefficients and negative ECT showed
the same and significant positive values. Positive ECT is 0.286909 and negative ECT is 0.289266, where when there
is a price deviation above and below the average balance line of onion prices at the farmer level, it takes three
weeks to adjust to the balance of changes in shallot prices. The onion market at the wholesale or parent market
occurs asymmetric price transmission from the wholesale price level (Caringin Main Market) to production prices
(at the farmer level). A significant t-value of one percent evidences this. Asymmetric price transmission can be
caused by abuse of market power.

Keywords: shallot planting, price integration, productivity.