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Mangaluru, Apr 7: A price storm is brewing in Mangaluru’s hotel and restaurant industry. Faced with skyrocketing raw material costs and mounting overheads, hoteliers are preparing to hike food prices by up to 10% within a month — a move that could hit the pockets of thousands of diners across Dakshina Kannada.

From milk and oil to LPG and staples like rice and toor dal, prices have surged, pushing both vegetarian and non-vegetarian establishments to the brink. Over 65% of hotels operate in rented spaces, and labour shortages are adding fuel to the fire.

Swarna Sunder of Dinki Dine says running a hotel without burdening customers is becoming near-impossible. “Costs are rising daily. We’re trying to strike a balance, but a hike is inevitable,” he said, calling Mangaluru a highly price-sensitive market.

Industry leaders, including the Dakshina Kannada Hotel Owners Association, are expected to meet soon to formalize the revision.

Meanwhile, hoteliers blame "unhealthy competition" for further disrupting the sector. “Some serve unlimited fish meals under ₹60 — it’s unsustainable and unfair,” said a hotelier, adding that such practices are forcing smaller eateries to shut shop.

Chandrahas Shetty, president of the district association, confirmed that rising input costs have left them with little choice but to revise menus.

Udupi: Deputy Commissioner K. Vidya Kumari has directed officials to expedite land acquisition for designated industrial zones in the district to facilitate new industries. She issued these instructions during a meeting at Rajatadri on Wednesday.

Lands have been identified across various taluks for industrial development. The DC emphasized that KIADB must acquire these lands and ensure essential infrastructure—electricity, roads, and drainage—to attract industries and generate employment.

A total of 77 acres of private land has been acquired and compensated, including 31.2 acres in Kerebettu village, Hebri taluk, and 45.7 acres in Shivapura village. However, approval for 36.5 acres of government land is still pending. She instructed the forest department to assess whether this land falls under an eco-sensitive zone.

For the Belapu Industrial Area, the DC urged officials to accelerate minor land acquisitions for road expansion and commence construction at the earliest. She also mandated rainwater harvesting systems for all units in the Miyaru Industrial Area to tackle water scarcity.

Currently, 22 export-based units operate in the district. The DC encouraged further promotion of exports and an increase in their number.

The meeting was attended by Joint Director of Industries Nagraj V. Naik, KIADB Development Officer Srinivasa Murthy, Small-Scale Industries Association District President Harish Kunder, Deputy Director of the District Industrial Center Seetharam Shetty, District Skill Development Officer Arun B., and others.

The Karnataka government has announced that Nandini milk will become ₹4 costlier per litre starting April 1, 2025. This is the second price hike this year.

The decision was made during a cabinet meeting led by Chief Minister Siddaramaiah. Karnataka Cooperation Minister K N Rajanna and Animal Husbandry Minister K Venkatesh said the increase is meant to support dairy farmers by covering the rising costs of producing and processing milk.

Officials also said that:

>> The extra money from the price hike will go directly to the milk producers.

>> The earlier ₹2 price hike (announced on June 26, 2024) will be withdrawn.

>> The new price hike of ₹4 will apply to both 500 ml and 1-litre packets.