Proprietors refuse to bring down rates despite recent fall in prices of pulses, veggies
The restaurant industry which has been left in the lurch after implementation of Goods and Sales Tax (GST) is now struggling for survival after an increase in price of vegetables and fluctuation in price of pulses.
Proprietors of restaurants in the city have refused to reduce prices of food items after rates of pulses like urad dal and fried gram have drastically come down in recent days. Price of best quality urad dal has been reduced from Rs 140 to Rs 80 whereas the rate of best quality fried gram too has plummeted from about Rs 140 to Rs 95 at grocery shops.
Bruhat Bangalore Hotels’ Association (BBHA) President Chandrashekhar Hebbar said, “Prices of vegetables like capsicum, beans, cauliflower and others have increased manifold for the past one month. We have not hiked prices of north or south Indian food items for the past two years despite fluctuation or increase in vegetables, groceries and pulses.
“At a time when we are struggling for our survival after the GST, how one can expect us to reduce prices of food items after rates of pulses have plummeted?” Hebbar asked.
MV Raghavendra Rao, BBHA vice president and owner of Kadamba Veg Hotel near Dr MC Modi Hospital, said, “Before increasing or reducing prices of any food items, restaurateurs will observe prices of vegetable and groceries for two to three months and only then will they take a call on it. We can’t suddenly increase prices of onion dosa soon after onion rates spike. Restaurant business is in dire straits after the implementation of GST and the business has come down by 30 per cent since then. Cut-throat competition in restaurant business has taken a heavy toll on big restaurants,” Rao explained.
“Payments for groceries have been pending for two to three months after the implementation of the GST. At a time when we are finding it difficult to clear dues, it is impossible for us to reduce prices of food items just because rates of pulses have come down. Business has become dull. It takes time to pick up,” opined KR Rajashekhar, manager of New Krishna Bhavan near Mantri Mall.
Chandrashekhar Hebbar said that the government should impose higher taxes on star hotels as only rich people visit such hotels. “We have appealed to the government to impose less tax of 5 per cent as there is no tax for perishable goods which restaurateurs use. North Indians will not understand the problems of south Indians,” Hebbar added.
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