Abstract
The paper studies the long-run and short-run relationships between the minimum support price (MSP) of wheat and the export of wheat from India and between the domestic market price and the Indian export of wheat using the autoregressive distributed lag (ARDL) method for the period of 2002 to 2019. The weighted average price (WAP) of wheat is taken as a proxy for the domestic market price at the national level. The empirical result suggests that there is no significant long-run and short-run relationship between MSP and domestic market price on the level of wheat exports in India. To a certain extent, the present level of exports of wheat is explained by the previous year's export level. Any disruption in the long-run equilibrium is corrected by nearly 40% per year. So the results suggest that other explanatory variables determining wheat export need to be addressed carefully to gain a large share in the international wheat market.
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