KOCHI: The times are not good for restaurants in the state. The owners, especially of smaller establishments, are finding it difficult to generate the revenue necessary to keep them afloat. Among the reasons cited by those in the industry are the steep increase in LPG prices and the sudden increase in wages for migrant labourers.
“The LPG price that used to be around Rs 1,740.50 for a 19kg cylinder and Rs 4,351 for a 47.5kg one, now stands at Rs 2,951 and Rs 7,373.50 respectively. The government has made a modest reduction in the price, which had reached Rs 3,000 for a 19kg cylinder a month ago. It doesn’t have any effect on the total expenses being incurred,” Azeez Moosa, Ernakulam district president of the Kerala Hotel and Restaurant Association (KHRA), told TNIE.
According to him, the rise in migrant workers’ wages has dealt another blow to the restaurant industry.
“The migrant workers who had gone home for the elections came back demanding a hike of more than Rs 100 in their wages. Imagine the situation of a small eatery that has to employ around 10 workers. The LPG price hike, increase in the cost of nearly all essential items like rice, urad dal, cooking oil, vegetables, meat and poultry, along with the wage hike, is dealing a killing blow to the industry,” he said.
Azeez also pointed out that a sense of impending doom has settled on those in the industry. Another interesting reason he cited is a fall in patronage.
“Restaurants are unable to get customers after 6 pm. Nobody knows why? We can understand such a situation happening in the rural areas. But in the city, and that too the commercial capital of the state? It should be noted that even after poultry and meat prices increased, we haven’t raised the rates of dishes,” he said.
He said that many of the smaller establishments are finding it difficult to even pay rent. Further, another issue has hit the industry, especially those whose main dishes are kuzhimandi, alfaham and tandoori.
According to Shaun George Joseph, proprietor of Pepe Marketing, a severe shortage of firewood charcoal, a key ingredient in preparing such dishes, has raised concerns that the availability of these items – which have become increasingly popular among Malayalis in recent years – could be affected.
Charcoal availability is being affected by a sharp increase in demand from other sectors due to the rising cooking gas prices. Traders say several small-scale industries and establishments have started using firewood and charcoal instead of gas.
“As a result, charcoal manufacturers are facing difficulties in obtaining the raw materials they need. The shortage of workers in the charcoal production sector has further worsened the crisis. And due to the paucity of raw materials and labour, charcoal production has declined. At the same time, charcoal prices have increased and quality has deteriorated,” said a trader.
More than 70% of the firewood charcoal supplied to Kerala comes from Tamil Nadu. The remaining 20 to 30% comes from Karnataka, Andhra Pradesh and other states.
Firewood from the karivelam (juliflora) tree, which is widely available in these regions, is used to produce cooking charcoal. The price of this firewood, which was earlier around Rs 4,000 per tonne, has now risen to as much as Rs 8,000, creating a major challenge for charcoal production and supply.
Traders said the charcoal currently reaching the market contains a higher proportion of dust, small pieces, partially burnt material, and damp sections. This has now become the standard quality available in the market.
