Surge in Packaged Water Prices in Tamil Nadu Amid West Asia Crisis
Synopsis
Key Takeaways
Chennai, March 24 (NationPress) The ongoing turmoil in the resource-rich West Asian region is beginning to affect households in Tamil Nadu, as the costs of packaged drinking water have surged due to rising input expenses related to petroleum-based materials.
Initially disrupting the hotel and hospitality sectors throughout the state, these repercussions are now being felt by residents who rely on 20-litre water cans and bottled water for their daily requirements. The hike in prices is primarily due to a significant increase in the cost of plastic raw materials used for producing containers.
Industry insiders reveal that the cost of PET (polyethylene terephthalate), a petroleum byproduct utilized in the manufacture of bottles and containers, has skyrocketed due to supply shortages. Consequently, the price of a new 20-litre bubble-top container has risen dramatically compared to previous levels, with the cost of components such as caps also increasing.
Manufacturers have reacted by raising the price of 20-litre water cans by approximately Rs 5, while some larger brands have increased rates by as much as Rs 10 per can. The price of bottled water has similarly escalated, with a case now costing between Rs 20 to Rs 30 more than it did before.
Tamil Nadu is home to nearly 1,500 packaged drinking water units, serving close to 15 lakh consumers who depend on 20-litre cans. However, the state has a limited number of manufacturers of plastic containers, resulting in supply shortages and production difficulties.
Every unit requires a consistent supply of new containers weekly, making the industry particularly susceptible to disruptions in raw material availability.
Retailers across various areas of Chennai and other cities have already started to transfer the elevated costs to consumers.
A 20-litre can that previously sold for around Rs 20 is now being offered at Rs 25 in numerous locations, with signs indicating that prices may continue to rise in the near future.
Urban households are beginning to feel the financial pressure as monthly expenses on drinking water increase, exacerbated by rising delivery costs. Industry experts caution that while fuel prices remain stable for now, any future increases in petrol or diesel rates could further inflate costs due to higher transportation fees, adding to the strain on consumers.