Mysuru: The Mysuru Hotel Owners Association has urged the State Government to immediately withdraw the recent ₹8-per-litre hike in milk prices, warning that the increase would add to the financial burden on hotels and eventually affect consumers.
Association president C. Narayanagowda clarified that hotels in Mysuru would not increase the prices of food items, snacks or meals for now. The association will review business conditions throughout November and take a decision on possible price revisions in December.
However, small hotels and roadside vendors are free to decide their own prices, he said.
Hoteliers highlight rising operating costs
Narayanagowda was speaking at a press conference held at the Association’s office in Krishnamurthypuram on October 31. He questioned the repeated increases in milk prices, stating that the hotel industry was already dealing with several challenges and could find it difficult to absorb additional costs.
He noted that the hospitality sector provides employment to people irrespective of caste, religion or educational qualifications. It also contributes to economic growth and provides an important market for agricultural produce.
Milk prices increased by nearly ₹17 in three years
According to Narayanagowda, milk prices have increased by nearly ₹17 per litre over the past three years. The latest hike of ₹8 per litre has placed further pressure on hotel owners.
The Karnataka Cabinet approved the latest increase on October 29, with revised prices coming into effect on November 1. The increase is also expected to affect the prices of dairy products such as curd, ghee and paneer, adding to the operating expenses of hotels and food establishments.
Narayanagowda warned that continued increases in essential commodity prices would make it increasingly difficult for hotel owners to maintain existing rates without affecting their business.
Rising costs add to pressure on hotel industry
The Association president pointed out that hotels were already facing higher expenses due to rising cooking gas prices amid the ongoing war, along with fluctuations in the prices of sugar, jaggery, rice, onions and vegetables.
Other challenges include a shortage of skilled workers, increasing wages, higher electricity and water charges, and rising municipal taxes.
He said these combined expenses were putting considerable pressure on the hospitality industry, which plays an important role in providing affordable food and employment.
Association suggests direct support to farmers
While acknowledging that protecting farmers’ interests was the State Government’s responsibility, Narayanagowda suggested that the government consider alternative ways of supporting dairy farmers.
He said farmers affected by drought should receive compensation for crop losses and sugarcane growers should be given fair prices for their produce.
Instead of suddenly increasing milk prices in the name of supporting farmers, the government could consider providing direct financial assistance or subsidies to them, he suggested.
The Association believes such measures could support farmers without placing an additional burden on consumers and businesses.
Hotel rates to be reviewed in December
Despite expressing concern over the milk price increase, the Mysuru Hotel Owners Association has decided against an immediate revision of food prices.
The Association will monitor business conditions throughout November before deciding on any changes to hotel rates in December. Until then, established hotels in Mysuru will continue charging existing prices for food, snacks and meals.
Hotel Owners’ Charitable Trust president Ravi Shastri, vice-president Ugraiah, and executive committee members Mahesh Kamath and K.S. Arun were present at the press conference.