Search

An efficient commodity market creates a price relationship between two or more markets. This study provides an overview of the behavior of premium granulated sugar prices and the price relationship between market levels. Time series data for the period January 2018-March 2022, are used in this study. Graphical trend analysis; and cointegration analysis with Vector Auto-regression (VAR) approach to find research objectives. The research found that the price behavior of premium quality granulated sugar in the traditional market and the modern market is more dynamic than the price at the wholesaler level. The highest price spike occurred in the early period of covid-19, and several months later it returned to stability. Price behavior in traditional markets does not follow movements at other market levels simultaneously but takes some time to reach equilibrium. There is a long-term rionship (cointegration) between prices at the level of traditional markets, modern markets, and wholesalers, which contribute to the balance in the market. Market players need to take a strategic role in maintaining price balance at every level of the market in order to create an efficient and fair market.

The dynamics of trading in the people's markets is a reflection of the economic growth of a region. Therefore, with the rapid growth of modern markets, it becomes a big challenge for traders in the market. Modern market conditions that have many advantages in terms of facilities and services, make people prefer shopping in the modern market to the people's market. The method used in this research is descriptive qualitative through SWOT analysis which is used as the basis for strategy formulation. Therefore, a management strategy is needed to improve the competitiveness of traditional markets, by improving management insight, entrepreneurial mind-set for market managers and sellers, renovating old buildings, increasing the cleaning and security services, as well as creating planning and performance evaluation.