Fuel crisis triggers food price hike in Coimbatore

Fuel crisis leads to rising food prices in Coimbatore, affecting restaurants, retailers, and the common man.

With shortage of LPG commercial cylinders and spiralling cost of packaging materials, prices of several food items are set to increase in Coimbatore and impact the common man.

Sources in the food sector, who did not want to be identified, told The Hindu on Tuesday that LPG commercial cylinders are sold at above ₹7,000 a cylinder and cost of packaging materials are up 15 % - 30 %. All products related to petroleum are on the rise and it is expected to take a week to know how much further the prices will increase. The cost of packaging is high for sweets and savouries compared with regular food items. A sweet box costs ₹4 more now. The price of milk has increased by at least ₹5 a litre and the cost of ghee has gone up by ₹100 a kg. These factors are hitting the hotels, restaurants, and sweet retailers, they said.

“It is not just the cost. But some of the packaging material are not available readily in the market. Hence, some of the food retailers have increased the prices by almost 20 % and some others plan to do so in the coming days,” said one of the branded hotel chain spokesperson.

“At one point, hotels will increase the price. At present we do not know how and when,” said another hotelier.

Bakeries and cafes in the city are also looking at increasing the prices as the input costs go up.