Abstract: The main objective of this study is to model and estimate relative price volatility equations for agricultural commodities in Nigeria and determine the effect of agricultural policies on relative prices. The data for the study were obtained from the publications of Central Bank of Nigeria, Federal Office of Statistics, Federal Ministry of Agriculture and Rural Development. The data covered the period 1970-2003. The Structural Adjustment Programme (SAP) brought about a significant structural shift in inflation, which increased relative price variability among food commodities during the period. The Green revolution, SAP and post-SAP policies had a significant positive impact on relative price variability. The findings suggest that policies which reduce the rate of inflation will minimize relative price variability among agricultural commodities and consequently reduce inefficiency and misallocation of resources in agriculture, that might be caused by inflation. The agricultural policies under SAP, Post-SAP and Green Revolution caused price changes which led to efficient re-allocation of resources. These policies should be considered in planning the agricultural sector.