The sharp decline in operating Janakeeya hotels follows the termination of two key government supports: a ₹10 per‑meal subsidy that was introduced during the COVID‑19 pandemic and a subsidised rice supply that ended in March. Six hotels closed their doors in the latest financial year, and many remaining outlets have either stopped offering the ₹20 meal or raised prices dramatically.

Janakeeya hotels were launched in 2020 under the Hunger‑free Keralam initiative to provide a traditional Kerala meal at a fixed price of ₹20. The scheme relied on a ₹10 per‑meal subsidy to keep the price affordable for low‑income diners, a support that has reportedly not been available for nearly two years.

In addition to the cash subsidy, each hotel could purchase up to 600 kg of rice per month from Supplyco at a concessional rate of ₹10.90 per kilogram. The discontinuation of this rice supply removed a critical cost‑saving element for the eateries, further straining their finances.

Operators say rising costs of essential commodities and cooking gas have compounded the financial pressure. Disruptions in supply chains linked to geopolitical tensions in West Asia and a regional drought have pushed food prices higher, prompting some hotels to charge as much as ₹50 for a meal. Official records show employment through the programme in Kozhikode has dropped from roughly 500 workers to about 400.

V.S. Reeja, a Kudumbashree entrepreneur from Pavangad, warned that the loss of subsidies has forced many units to either cease the ₹20 meal or shut down entirely. A former coordinator of the Kudumbashree Mission added that the closures jeopardise the original social‑welfare goal of combining affordable food with livelihood opportunities for Kudumbashree members, leaving low‑income families without a reliable source of cheap meals.

Local Self‑Government department sources confirmed that the state government is reviewing the situation and that Kudumbashree officials are preparing a report on the scheme’s viability. Stakeholders have called for renewed government intervention to sustain the remaining hotels and restore the affordable‑meal model.