Malappuram (Kerala): Kudumbashree Janakeeya Hotels across Kerala face severe operational strain following the withdrawal of state government subsidies and the suspension of low-cost rice supplies, leading to widespread closures. Out of 1,198 Janakeeya Hotels established in the state, 543 have shut down so far, leaving only 655 currently operational.

Launched as an affordable meal initiative, these budget eateries were able to offer full meals at ₹20 during the COVID-19 pandemic due to a ₹10 per meal government subsidy. However, this financial subsidy has since been completely withdrawn.

Compounding the crisis, the supply of subsidised rice, allotted through Maveli Stores at ₹10.90 per kilogram, has been suspended since March. Previously, each Janakeeya Hotel received a monthly quota of 600 kg of rice at this reduced rate. The simultaneous loss of the meal subsidy and subsidised rice has forced women entrepreneurs to bear the entire operational expenditure independently.

Soaring inflation and rising prices of essential food items, including vegetables and cooking gas, have further escalated operational overheads. In response, several outlets across various districts raised meal prices to between ₹30 and ₹45. Despite the price hikes, revenues have failed to keep pace with operational costs, while added burdens such as building rent, electricity bills, and water charges have turned many outlets unviable.

Malappuram district, which originally housed the highest number of Janakeeya Hotels at 144, has seen 41 outlets close down. Pathanamthitta has witnessed 39 closures out of 58 outlets, while Kottayam has recorded 71 closures out of its 110 hotels.

In 2023, the Kerala government allocated ₹33.6 crore in subsidies for 1,198 Janakeeya Hotels, which provided sustainable livelihoods for 5,043 women entrepreneurs under the Kudumbashree network.