Marketing Efficiency (Shepherd’s Method) measures the efficiency of an agricultural marketing system by comparing the value of goods sold with the total marketing costs incurred. It focuses only on marketing costs and does not include marketing margins.
Marketing Efficiency (ME) = Value of Goods Sold ÷ Total Marketing Cost
Index of Market Integration measures the degree to which prices of a commodity in different markets move together over time. A higher value of the index indicates better integration and efficient transmission of price information between markets.
Index of Market Integration (IMI) = 1 − (Price Difference between Markets ÷ Average Price of Markets)
Market Arrival Index is an index used to measure the relative quantity of an agricultural commodity arriving in a market during a particular period compared to the average arrivals over a base period. It helps in studying seasonal variations in market arrivals.
Market Arrival Index (MAI) = (Market Arrivals in a Given Period ÷ Average Market Arrivals) × 100