India yesterday abolished the minimum export price (MEP) for onion in order to enhance farmers' income, ahead of assembly elections in Maharashtra state, the largest producer of the kitchen staple.

The Directorate General of Foreign Trade (DGFT) removed the MEP on onion with immediate effect, reports our New Delhi correspondent.

In May this year, India lifted the ban on onion exports but imposed a $550 per tonne as the minimum export price, which essentially meant farmers could not sell their produce overseas at lower than this rate.

"The Minimum Export Price (MEP) condition on export of onions is removed with immediate effect and until further orders," a DGFT notification said.

The decision to remove the MEP on onion has been taken despite high retail prices of this key kitchen item.

According to the data compiled by the Department of Consumer Affairs, the all-India average price of onion yesterday was Rs 50.83 per kg, while the modal price was Rs 50 per kg. The maximum price of onion was Rs 83 per kg and the lowest Rs 28 per kg.