This article empirically analyses the impact of trade liberalisation on major cash crops of India. Trade liberalisation in agriculture can be acceptable only if developing countries can be convinced of its benefits as this sector provides food security and livelihood to large sections of the population. This study takes a different approach to model volatility of agricultural crop prices facing farmers using time series models to enquire whether trade liberalisation has indeed increased unpredictability of prices. The Generalised Autoregressive Conditional Hetroscedasticity (GARCH) models were found to perform well in forecasting volatility, but food crops did not show any significant sign in this direction, though two commercial crops were found to have shown increased volatility.
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