This paper builds on the work of Deaton and Laroque (Journal of Development Economics, Vol. 71 (2003), pp. 289–310) by empirically testing for long‐run commodity price adjustment in a non‐linear framework. We propose a non‐linear adjustment mechanism of commodity price dynamics linked to the Lewis model. Using more recent data by updating the price, income and production indices, we employ advanced econometric techniques in order to investigate whether there is empirical evidence to support the arguments of the non‐linear model. The findings lend support to the underlying non‐linear framework proposed in this paper.