Daijiworld Media Network – Bengaluru

Bengaluru, Apr 2: The recent hike in milk prices by Rs 4 per litre in Karnataka has added to the financial strain on citizens, already struggling with rising costs of essential goods like electricity and fuel. This latest increase in milk prices is now forcing hotel owners to consider raising food prices at their establishments.

The hospitality industry, already facing challenges due to rising electricity tariffs, fuel costs, and the prices of essential goods, is now grappling with the impact of the increased costs of Nandini milk and curd, which are key ingredients in many hotel offerings. As a result, hoteliers are now contemplating price hikes for tea, coffee, snacks, and meals.

The price revision, which came into effect on April 1, sees the cost of milk and curd increase by Rs 4 per litre, while electricity tariffs have been raised by 36 paise per unit. These increases, which directly affect the hotel industry, are expected to result in a price adjustment for food items in restaurants.

The Karnataka Hotel Owners’ Association is planning a meeting soon to discuss the rate hike, which is anticipated to range between 10-15 percent, with new prices likely to be implemented in April itself. With the cost of groceries, milk, LPG cylinders, and electricity continuing to rise, hoteliers have little option but to increase prices.

However, the decision to raise prices has sparked concern within the industry, with many fearing that the added financial burden will deter customers, potentially leading to a decline in business for many establishments.