RIEB Discussion Paper Series No.2020-25

RIEB Discussion Paper Series No.2020-25


The Covid-19 Impact on Agricultural Prices in India


Our study builds on a few econometric studies of the Covid-19 impact on food prices in India. The period covered is March-June 2020 during which a national lockdown was imposed and its subsequent relaxation (Unlock 1). Wholesale and retail prices and the wedge between them are analysed in detail, focusing on three Indian states, Maharashtra, Jharkhand and Meghalaya. The importance of this study lies in using rigorous panel models (the Hausman-Taylor model with fixed or random effects) and a dynamic panel SGMM model. The latter allows us to establish causality between severity of the Covid-19 pandemic and a few food commodities' prices. Thus new insights emerge that could help mitigate the severity of economic stress and hardships.


Covid-19 pandemic; Food prices; Panel models; Lockdown; Maharashtra; Jharkhand; Meghalaya

JEL Classification

E31, E61, E65


Katsushi S. IMAI
Department of Economics, The University of Manchester, UK
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059

School of Business, Public Policy and Social Entrepreneurship, Ambedkar University, India

Raghav GAIHA
Glovbal Development Institute, University of Manchester, UK
Population Studies Centre, University of Pennsylvania, U.S.A.