Kudumbashree’s Janakeeya hotels shrink in Kozhikode as subsidies dry up

The number of Kudumbashree-run Janakeeya hotels in Kozhikode district has come down from 102 to 72, with six outlets shutting down during the current financial year alone, as the withdrawal of government subsidy and discontinuation of subsidised rice supply have made it increasingly difficult for the units to serve meals at affordable rates.

Janakeeya hotels, introduced under the State government’s Hunger-free Keralam initiative in 2020, were conceived to provide a traditional meal at ₹20. During the COVID-19 pandemic, the government provided a subsidy of ₹10 per meal, enabling the outlets to maintain the low price.

However, the subsidy has reportedly not been available for nearly two years. The supply of rice at subsidised rates through Supplyco outlets was also discontinued in March this year. The hotels had earlier received rice at ₹10.90 a kg, with each unit eligible to procure up to 600 kg a month.

“With the withdrawal of both forms of support, several units have either stopped serving the ₹20 meal or shut down altogether. Some outlets have increased the price of a meal, with certain Janakeeya hotels reportedly charging up to ₹50,” said V.S. Reeja, a Kudumbashree entrepreneur from Pavangad who was earlier associated with the project. According to her, the number of people employed through the initiative has also declined from around 500 to nearly 400 in the district as per official records following the closure of the outlets.

Hotel operators said the rising prices of essential commodities and cooking gas had further increased their operating costs. The disruption in supply chains following the geopolitical developments in West Asia and the impact of drought conditions have added to the pressure on food prices, they added.

Janakeeya hotels gained considerable popularity during the pandemic, when they served food at affordable rates. The Kudumbashree had launched around 1,000 such hotels across Keralam within a year of the scheme’s launch.

Employees and operators have sought renewed government intervention to keep the remaining units viable. They said continued government support was essential if the hotels were to provide meals at affordable rates without incurring unsustainable losses.

“The closure of Janakeeya hotels has also raised concerns over the future of the programme that was initially envisaged as a social welfare initiative combining affordable food with livelihood opportunities for Kudumbashree members,” said a former coordinator with the Kudumbasree Mission. She pointed out that several lower income groups who had been depending on the fair meals supply scheme would also suffer with the gradual closure of Janakeeya hotels.

Meanwhile, sources in the Local Self-Government department confirmed that efforts were on to revive the scheme following the intervention of the State government in the issue. Kudumbashree officials are also expected to submit a report to the government, they added.