ANALYSIS OF SHALLOT PRICE VARIATION IN SEVERAL TRADITIONAL MARKETS AT KOTA KUPANG

Abstract

The price of shallots is an important component affecting public welfare because it is directly related to consumers’ purchasing power and traders’ income. Market dynamics influenced by changes in supply, demand, and distribution cause price fluctuations and price variations across markets. This study aims to determine the level of shallot price fluctuation and to analyze price integration between the two markets in both the short and long term during the 2020–2024 period. The research method used a quantitative approach with secondary data in the form of monthly time-series data obtained from the East Nusa Tenggara Provincial Trade Office and the Central Statistics Agency. Data analysis was conducted using the Vector Autoregression (VAR) method and the coefficient of variation with the assistance of EViews software. The results show that the level of shallot price fluctuation in both markets was relatively high and unstable, with coefficient of variation values of 29% in Inpres Naikoten Market and 28% in Oeba Market. In addition, the market integration analysis shows that shallot prices in the two markets were integrated both in the short and long term, but the relationship was asymmetric or unidirectional, running from Oeba Market to Inpres Naikoten Market. This finding indicates the dominant role of Oeba Market in shallot price formation in Kupang City.