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The Covid-19 Impact on Agricultural Prices in India

Author

Listed:
  • Katsushi S. Imai

    (Department of Economics, The University of Manchester, UK, Research Institute for Economics and Business Administration, Kobe University, JAPAN)

  • Nidhi Kaicker

    (School of Business, Public Policy and Social Entrepreneurship, Ambedkar University, INDIA)

  • Raghav Gaiha

    (Glovbal Development Institute, University of Manchester, UK and Population Studies Centre, University of Pennsylvania, U.S.A.)

Abstract

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.

Suggested Citation

  • Katsushi S. Imai & Nidhi Kaicker & Raghav Gaiha, 2020. "The Covid-19 Impact on Agricultural Prices in India," Discussion Paper Series DP2020-25, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2020.
    • Handle: RePEc:kob:dpaper:dp2020-25
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2020-25.pdf
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    References listed on IDEAS

    as
    1. Jody Harris & Lutz Depenbusch & Arshad Ahmad Pal & Ramakrishnan Madhavan Nair & Srinivasan Ramasamy, 2020. "Food system disruption: initial livelihood and dietary effects of COVID-19 on vegetable producers in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 841-851, August.
    2. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    3. Baltagi, Badi H. & Bresson, Georges & Pirotte, Alain, 2003. "Fixed effects, random effects or Hausman-Taylor?: A pretest estimator," Economics Letters, Elsevier, vol. 79(3), pages 361-369, June.
    4. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    5. Negi, Digvijay S. & Birthal, Pratap S. & Roy, Devesh & Khan, Md. Tajuddin, 2018. "Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks," Food Policy, Elsevier, vol. 81(C), pages 106-121.
    6. Katsushi S. Imai & Nidhi Kaicker & Raghav Gaiha, 2021. "Severity of the COVID‐19 pandemic in India," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 517-546, May.
    7. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    8. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    9. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
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    Cited by:

    1. Katsushi S. Imai & Nidhi Kaicker & Raghav Gaiha, 2020. "The Covid-19 Impact on Agricultural Market Arrivals and Prices in India: A Panel VAR Approach," Economics Discussion Paper Series 2010, Economics, The University of Manchester.
    2. Goswami, Binoy & Mandal, Raju & Nath, Hiranya K., 2021. "Covid-19 pandemic and economic performances of the states in India," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 461-479.

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    More about this item

    Keywords

    Covid-19 pandemic; Food prices; Panel models; Lockdown; Maharashtra; Jharkhand; Meghalaya;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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