Sugar prices nearly double in Mysuru, hotel owners urge government action

The sharp rise in the price of sugar and other essential commodities has placed the hotel industry in Mysuru under significant financial strain, with the cost of key ingredients nearly doubling in just a few weeks, according to the Mysuru Hotel Owners’ Association.

Sugar, which was priced at around ₹40 a kilogram about 15 days ago, has now surged to ₹72 a kilogram, marking a steep increase within a short period. The association attributes this rise partly to the growing diversion of sugarcane for ethanol production, a policy aimed at blending ethanol with petrol to reduce oil imports and promote cleaner fuel.

C. Narayana Gowda, president of the association, said the price escalation is not limited to sugar alone. Onion prices have climbed from ₹18 to ₹50 a kilogram, while rice used in meals has risen from ₹50–₹55 to ₹70 a kilogram. Good-quality cooking oil, which was available at around ₹140, now costs approximately ₹250. These increases have compelled hoteliers to either absorb the additional costs or pass them on to customers, potentially affecting their livelihoods and consumer spending.

The association also noted that cooking gas prices remain high, and any further rise in diesel or petrol prices would add to the burden on hotel operators, especially those reliant on transport for supplies. The failure of monsoon rains in several regions has further contributed to the rise in foodgrain and essential commodity prices, the association said, adding that this is not a temporary fluctuation but a trend that could worsen if not addressed.

The impact of rising prices extends beyond the hotel industry. Daily wage earners, small eateries, and ordinary households in Mysuru are likely to feel the pressure as food costs rise. The hotel industry, which serves as a key indicator of local economic activity, has urged the government to intervene immediately.

In a statement, the Mysuru Hotel Owners’ Association called on the government to take steps to stabilise prices, improve supply chain efficiency, and provide relief to the hospitality sector. They have also requested a review of the ethanol production policy to balance the demand for fuel with the need for affordable food commodities.

Experts note that while ethanol blending is a long-term environmental goal, its impact on sugar prices must be carefully managed through buffer stocks and import policies. The government may also consider expanding the open market sale of sugar and other essential goods to ease the supply crunch.

As the situation evolves, hoteliers in Mysuru hope for swift government action to prevent further escalation. For now, the industry remains resilient, but sustained price rises could lead to reduced menus, lower consumer turnout, and potential job losses in the sector.