How Do India’s Export Regulations Affect Onion Prices in Nepal?

This study analyzes the impacts of India's export regulations on onion prices in Nepal using wholesale price data in these two countries, spanning from June 2013 to September 2023.The causal relations of prices with their lags and enforced export regulations are examined using the vector autoregression model.The results reveal that both countries' lag prices and the export regulations enforced by India significantly affect onion prices in Nepal.Moreover, the significant Granger causality of the lags of India's onion prices on those of Nepal is found to have weakened since 2018.