Sachet Water Producers Threaten To Halt Production Over Economic Crisis

The National Association of Sachet and Packaged Water Producers (NASPAWAP) has threatened to halt production in the country of recent economic challenges.

According to the executives of NASPAWAP, the depreciation of the cedi, increment of fuel prices, and inflation are affecting their business.

A statement issued by NASPAWAP and signed by its President Magnus Nunoo said: “The packaged water industry relies heavily on imported plastic pallets/granules used in the manufacture of the polythene films and pet bottle preforms, that are used to package the treated water for consumers.

“It is important to note that packaging alone forms about 60 per cent of the production cost for sachet and bottled water. Diesel fuel used for distributing the packaged water to market centres for consumers was around 15 percent of the product cost as at the third quarter of last year.”

It stated that: “Due to high increase of diesel and other petroleum products, diesel fuel for distributing packaged water to consumer centres now exceeds 25 percent of the product price,” while, “electricity cost which used to be around 15 percent of the product price has increased to 20 percent of the product price as a result of the recent increase in utility tariffs.”

NASPAWAP has, therefore, called on the government to take urgent steps to find solutions to their grievances.

NASPAWAP wants the government to: “reduce taxes on the packaging materials for the industry, review the import and customs duty formula for the raw materials imported for the packaged water industry,” and “freeze payment of VAT, excise tax and other taxes on the packaged water industry.

“Freeze government charges and fees for the packaged water industry and if possible, subsidise electricity and water bills of the industry, remove completely all taxes on reusable jar bottles used for the dispensing machines,” and “call on the bank of Ghana to be circumspect in the adjustment of the policy rate which is increasing the cost of borrowing from the banks to the businesses,”.

It further indicated that: “Calling on the packaged water producers across the country to shut down production and distribution for a couple of days to press home our demands may have been the obvious thing to do but as an essential product provider, we are mindful of the repercussion of such action and the health hazards it can pose to the citizens, more especially as most of the river bodies are highly polluted and most households depend on packaged water as the main drinking source, reported by the Ghana Statistical Service.”

It continued to state that, “It is important that the public, Corporate Social Organisations (CSOs), the heads of faith-based organisations, NGOs, Parliament of Ghana, Diplomatic missions and Others, support the packaged water industry by calling on the government to heed to the plight of the industry.”

NASPAWAP has therefore given the government a week to address their concerns else they “will have no option than to pass on the cost to the public and possible shutdown of production and distribution for a week across the country.”