Kerala hotels and consumers are struggling as food prices surge. With rising vegetable, LPG, meat and grocery costs, restaurants cut dishes and operating costs increase.

Palakkad: Hoteliers and consumers in Kerala are struggling as the prices of essential commodities continue to rise, pushing up daily operating costs and eating expenses across the state. From commercial cooking gas to basic groceries, the steep price hike is putting severe pressure on restaurants and people who depend on hotel food.
Vegetable prices have surged sharply. The price of ladies finger has shot up within a week. In key markets such as Coimbatore, from where vegetables are supplied to Palakkad, the wholesale price now stands between Rs 65 and Rs 70 per kg. Retail prices will climb to Rs 80 to Rs 90 per kg.
Although the price of drumsticks has come down slightly, it still costs around Rs 250 per kg in retail markets. As a result, its use in curries like sambar and aviyal has been significantly reduced. Only the relatively stable prices of brinjal and raw banana have brought some temporary relief. Many hotels are now relying more on onions and potatoes in curries to control costs.
The price of various beans has also increased, forcing many hotels to stop serving beans stir fry, which now costs about Rs 80 to Rs 90 per kg. Bitter gourd fry has also been removed from menus, as the vegetable touched Rs 70 per kg. The cost of broiler chicken has risen from Rs 135 to Rs 170 per kg.
Commercial cooking gas remains one of the biggest burdens. The price was increased by Rs 190 in January 2025. Although it was reduced several times later, rates have now gone up again by Rs 119 this January. Even switching to firewood has not helped, with tamarind wood rising to Rs 70 per kg from last year’s Rs 40, and mixed firewood now costing Rs 50 per kg instead of Rs 35, along with additional transport charges.
Coconut and coconut oil prices also remain high. Coconuts cost Rs 60 to Rs 65 per kg, while large hotels manage to get them at Rs 55 wholesale. Smaller hotels, however, are forced to buy at higher retail prices. Coconut usage has been reduced, and many have stopped using coconut for stir-fry preparations. Although coconut oil prices have declined slightly in the past month, they still remain above Rs 320 per litre.
Kerala Hotel and Restaurant Association state vice president P.M. Shinaj Rahman urged government intervention to stabilise prices. "Along with food costs, electricity, water charges and building taxes have also increased, pushing hotel operating expenses even higher. Meanwhile, hoteliers cannot proportionately raise food prices because a large section of the public, including daily wage workers, depends on affordable hotel meals."
Published: 09 Jan 2026, 02:14 pm IST
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