New Delhi: The government on Wednesday further reduced the minimum export price (MEP) of onion by USD 25 to USD 125 per tonne to boost exports.

"MEP of all varieties of onions, excluding Bangalore Rose Onions and Krishnapuram Onions, will be USD 125 per tonne," the Directorate General of Foreign Trade (DGFT) said in a notification.

However, the export price of premium varieties of onions -- Bangalore Rose and Krishnapuram -- will continue to be USD 250 per tonne, the DGFT said.

Last month, the MEP of onion was cut to USD 150 per tone from USD 250 per tonne in view of slow exports.

Onion exports from India declined by nearly 23 percent to 1.03 million tonnes in the first nine months of the current fiscal, as against the year-ago period, due to the higher MEP.

India, the second-largest onion producer in the world, exported 1.34 million tonnes of onions last fiscal. The country's onion production is estimated at 15.13 million tonnes in the 2011-12 crop year (July-June).