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TN Govt asks hotels, restaurants to reduce prices

The Tamil Nadu Govt warns hotels and restaurants that action will be taken against them if they do not reduce the prices of food items.

business Updated: May 17, 2008 14:05 IST

The Tamil Nadu government on saturday warned hotels and restaurants that action would be taken against them if they did not immediately reduce the prices of food items

An official press release in Chennai said that the government has asked hotels and restaurants to reduce prices of items, especially popular delicacies like idli, dosa and vada, due to rising inflation.

Food minister A V Velu issued the warning at a meeting with representatives of the Hotel Owners Association on Saturday.

Velu recalled a meeting last year, where the Association was asked to reduce the prices and said that they had not adhered to the directive even after a year.

Quoting the Minister, the release said that the prices should be lowered, considering the plight of sections of society like daily wage workers and tourists visiting the state, as food was an important part of their daily routine.

"They should not be affected by the prices of foodstuff," the release said, quoting Velu.

Representatives of the association assured the minister that they would reduce the prices of food items.

Listing out the state's efforts in checking rising prices of essential commodities, Velu said the government had banned online trading of essential commodities and also reduced the import duty on cooking oil.