Alcohol Consumption during the Covid-19 Pandemic in India

Abstract

The study examines the impact of Covid-19-induced economic stressors (such as incomes and job losses) on household alcohol consumption in India. Our analysis, based on eight waves of the Centre for Monitoring Indian Economy–Consumer Pyramids Household Survey (CMIE-CPHS) for the period January 2019–August 2021, confirms an increased consumption of alcohol during the pandemic despite supply restrictions imposed by the state. A spurt was witnessed across socioeconomic groups with varying intensities. This confirms the self-medication hypothesis and stress-response-dampening theory that households responded to the pandemic-related economic and psychological shocks by increasing the consumption of alcohol and is more significant for the poor and the marginalised. JEL Codes: D12, C23