Market Integration: How Does It Work in National Shallot Commodity Market in The Middle of Covid-19 Pandemic?

Abstract

The impact affected by the covid–19 pandemic influences various sectors in Indonesia, with no exception in agriculture sector. However, the agriculture sector still becomes a sustaining sector for other economic sectors because society's necessity is fulfilled by agriculture. Shallot is one of seven important commodities as basic needs for Indonesian and horticulture primadonna. Covid–19 pandemic presence influences shallot marketing indirectly from farmer till modern market. This research was conducted to analyze market efficiency of national shallot before and after covid–19 pandemic breaking out in Indonesia and used secondary data, which was approached through price data in farmers, wholesalers, traditional markets, and modern markets. This research would be analyzed using Ordinary Least Square approach on Ravallion Model. The research result showed that national shallot market was inefficient in the middle of a pandemic. Characteristic of shallot market was certainly volatile and had fluctuated prices, but it was more volatile in the middle of pandemic than before the pandemic broke out. It could be seen from market connection index and variance value. One of causes that is undeniable is distribution and information obstruction, which is caused by pandemic breaking. Besides, Large Scale Social Restriction rule caused shallot distribution disturbed.