Trichy/Madurai: A steep Rs 993 hike in the price of commercial LPG cylinders has severely impacted restaurants and roadside eateries in Trichy and Madurai, forcing many small outlets to temporarily shut down and prompting larger establishments to plan a 20-30% increase in food prices.
Price Surge Details
The price of a 19-kg commercial LPG cylinder, which previously cost around Rs 2,200, has risen to Rs 3,200 from Friday. Hoteliers report that the shortage of commercial LPG has also fueled black-market sales, with cylinders allegedly being sold for as much as Rs 4,000.
Impact on Small Eateries
Small eateries, already struggling with rising input costs, said they are unable to absorb the sudden increase. R Sundar, who runs a roadside eatery in Palakkarai, stated, "We have closed our eatery because we cannot afford to spend more than Rs 3,000 on a cylinder every three days. If we raise food prices, customers who come for affordable meals will stop visiting." Several small-scale outlets have already increased the prices of idli, dosa, and pongal by 10-20% due to the LPG shortage and soaring refill costs.
Inevitable Food Price Hikes
Hotel owners said further hikes in food prices are inevitable, especially during the peak summer travel season. S Sundaresan, secretary of the Trichy District Hotel Owners Association, explained, "May and June are peak months for us as people travel during vacations. Food prices may go up by 20-30% in the coming days. Switching to firewood or electric stoves is not easy because kitchens and workers are not prepared for it." Prices of parotta, dosa, and deep-fried items, which consume more LPG, are expected to rise sharply.
Shift to Alternative Cooking Methods
K L Kumar, vice-president of the Tamil Nadu Hotel Association, said some restaurants have started shifting to firewood and electric cooking methods to cope with the crisis. "All hotels are being forced to increase food prices. Without a hike, we cannot sustain operations," he said, alleging that commercial LPG cylinders are being diverted to the black market.
Government Urged to Act
Trade bodies urged the government to revise LPG prices gradually instead of imposing a steep increase at one go. M K Mohammed Muhaiyuthdeen, secretary of the Madurai Coffee Tea Merchants' Association, said the hike would severely affect small traders. "For businesses that can continue operations, increasing prices is the only option. The government should immediately reconsider the hike as it disproportionately affects small business owners," he said.
