An initiative of a group of private milk producers is likely to bring respite to Delhiites from high onion prices.

They have decided to sell onions, procured from neighbouring states, at Rs 49 a kg -- almost Rs 31 less than the prevailing market rate in the national capital.

The onions will be sold only from 55 outlets across Delhi, mostly located in and around residential areas, said Mohan Singh Ahluwalia, the president of Delhi Gwala Gaddi Sangh, an informal association of private milk providers.

Ahluwalia said the association has planned to sell about 112 tonnes of onions on Tuesday itself.

In Delhi, retail prices of onions, which touched Rs 80 a kg in mid-October, did not come down even after there was a slight decline in wholesale rates.

“The commodity has been purchased from the onion growers of Alwar, Mewat and Jaipur,” Ahluwalia told Business Standard.

He said as milk producers have rapport with farmers, they are in a better position to ensure steady supply rather than middlemen and commission agents.

The group will buy onions from farmers at about Rs 42 per kg.

“We will ensure that onion prices come down in Delhi in the next 10 days, as when supply increases, hoarders will be compelled to release their stocks,” Ahluwalia said.