Japanese encephalitis claims another 25 lives in India, raising the death toll in South Asia to 1,243 over the last six months, but doctors say new infections are decreasing as monsoon rains ease up, causing fewer puddles for disease-carrying mosquitos to breed in.

About 400 people, mostly children, are being treated for the disease in various hospitals across Uttar Pradesh, the worst hit Indian state where at least 907 deaths have been reported in the region's worst outbreak in decades, says Vijay Shankar Nigam, head of the state's communicable disease department.

Authorities say another 65 people have died in eastern Bihar state and 271 in neighboring Nepal.

"Twenty-one fresh cases were reported on Saturday night across Uttar Pradesh as compared to up to 100 cases (a day) until recent weeks," says Nigam.

Seasonal rains create puddles and pools which allow disease-carrying mosquitos to breed.

Doctors say the disease, which causes high fevers that can damage the brain, leaves nearly two thirds of its victims afflicted with permanent mental and physical disabilities.

Meanwhile, doctors have suggested if the local government cannot afford to vaccinate all children in the state, that it start inoculating pigs, the source of the disease.

The proposal comes as the state government prepares to vaccinate 7 million children under 15 years of age from November at a cost of 2.5 billion rupees ($55.5 million), exceeding its annual health budget of 1.06 billion rupees ($23.5 million). The 7 million children are in 7 of 70 districts hit by the encephalitis outbreak.