Abstract
This study aimed to analyze the expenditure, own and cross-price elasticities of ten major vegetables in Southern India. using cross-sectional data from selected households in four southern states of India viz., Andhra Pradesh, Telangana, Karnataka and Tamil Nadu during 2020 to 2022. We use Working-Leser model, LA/AIDS model and QUAIDS model to compute elasticities and found QUAIDS model as the best fit. As expected the own-price elasticities for all the vegetables are negative and the expenditure elasticities are more than one, except tomato, lettuce and green sorrel. The cross-price elasticities showed that potato is complementarity to tomato, lettuce and green sorrel and the substitution effects of price change were not quite strong, except ivy gourd for bitter gourd; potato for ivy gourd and green sorrel for bitter gourd. Systematic differences in the absolute magnitudes of the expenditure elasticity and own-price elasticity were found and the demand for vegetables is largely influenced by the price change than the income/expenditure change. So, an appropriate price intervention policy by the Government may be more effective in influencing consumption pattern of vegetables enjoying more elastic demand.
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