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The Hindu·3 min read·medium

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

T
The Hindu Bureau
Kudumbashree’s Janakeeya hotels shrink in Kozhikode as subsidies dry up
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Kudumbashree-run Janakeeya hotels in Kozhikode are closing down due to the withdrawal of government subsidies and rising operational costs. The initiative, which provided affordable meals, is struggling to maintain its model as food prices increase.

Why it matters

The decline of this initiative reflects the broader impact of inflation and policy shifts on social welfare programs for the poor.

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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.

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