THIRUVANANTHAPURAM: As food prices continue to rise and meals at restaurants become increasingly unaffordable for ordinary people due to LPG and fuel price hikes, Kerala’s Janakeeya Hotels – launched as part of the Hunger-Free Kerala initiative to provide subsidised meals – are facing an existential crisis.
Despite mounting operational expenses, the hotels continue to serve meals at just Rs 30. The uncertainty has intensified following the change in government, as the new administration is yet to clarify its stand on the scheme. Mounting financial pressure, coupled with rising operational costs and dwindling government support, has left operators across the state struggling, as the rate fixed for meals under the scheme has become financially unviable.
The crisis has deepened after the government stopped supplying subsidised rice, and many local bodies reduced or withdrew support for the scheme. Of the 1,100 Janakeeya Hotels launched across the state, only 655 remain operational.
“When we started six years ago, the idea was simple - no one should go hungry because they cannot afford a meal. Today, even as rice, oil and gas prices soar, we continue serving lunch at Rs 30. But without subsidy support, it is becoming harder to keep that promise alive,” said Rajam S S, who runs a Janakeeya Hotel in Neyyattinkara that serves meals to daily wage workers, bus drivers, hospital bystanders and elderly people.
“If we raise the price, many of them may stop coming. If we don’t, we struggle to survive. We switched from LPG to firewood to cut costs, but there is only so much we can do,” she said.
Operators have been demanding a revision of the `30 lunch rate, arguing that the current pricing is no longer viable in the face of increasing food, fuel and labour costs.
However, they cannot raise prices on their own as the rate is fixed under the scheme, and any revision requires approval from the state government. “The main demand from operators is a hike in the meal price to Rs 60. At present, around 655 Janakeeya Hotels are active,” said a senior official of the Kudumbashree Mission.
The scheme had earlier received support through a Rs 10 subsidy per meal and subsidised rice supplies.
However, the meal subsidy was discontinued around a year ago, while the order facilitating the supply of subsidised rice has also expired. Kudumbashree has sought an extension of the rice support, the official said.
According to Kudumbashree Mission authorities, the future of the scheme now depends on policy decisions of the new government. Kudumbashree is currently reviewing its various enterprises, including Janakeeya Hotels, to explore additional support mechanisms and assess their long-term sustainability. “The challenge is to ensure that the intended beneficiaries receive support while enabling entrepreneurs to run the units without incurring losses,” the official added.
Vanaja K , an operator who runs a Janakeeya Hotel near SMV School in Thiruvananthapuram, said they are not receiving any benefits from the government and are surviving on loans and credit from local shops.
“We started this hotel during the pandemic and, when the subsidy was available, we managed well. We would cook three or four sacks of rice a day, and there would be long queues of customers. But after the subsidy was withdrawn, everything changed. The cost of rice, vegetables, cooking gas and electricity has gone up sharply, while our income has remained almost the same,” said Vanaja.
She said that if subsidy support is not reinstated, they will have to shut down.