Impact of COVID-19 pandemic on demand and supply shock on food commodities and livelihood in India

Abstract

The COVID-19 induced nationwide lockdown and its associated measures disrupted food supply chains, causing panic buying and price fluctuations. The agricultural sector initially witnessed positive growth, but the shortage of labour due to reverse migration adversely affected crop harvesting, leading to food losses. The agri-food supply chain, from production to consumption, experienced disruptions in transportation, labour availability, and storage facilities. The dairy sector faced challenges with reduced milk productivity and increased expenses, leading to losses for farmers and cooperatives. The pandemic also triggered an employment crisis, especially in the informal sector, and widened income inequality. Migrant workers faced hardships and loss of livelihood. The paper emphasizes the need for comprehensive policy interventions, including labour reforms and social protection measures, to rebuild the economy and safeguard vulnerable sections of population. Ensuring resilient food supply chains and nutritional security is crucial for future crises. Government schemes and direct benefits transfers played a vital role in supporting farmers and susceptible households during the pandemic, underscoring the importance of enhancing such measures.