Packaged drinking water prices set to go up

Vijayawada: Amid rising input costs, prices of packaged drinking water bottles are set to increase across the state, industry sources said on Tuesday.

Manufacturers said that production costs have gone up sharply due to a steep rise in the prices of raw materials and packaging components. With summer approaching, demand for bottled water is also expected to increase by 15–20 per cent, adding further pressure on supply and pricing.

The decision to hike prices was taken at a meeting of the Andhra Pradesh Packaged Drinking Water Manufacturers’ Association held in Vijayawada, which was attended by manufacturers from Krishna, Guntur, and Prakasam districts. According to the association, the price of plastic preforms has risen from Rs110 to Rs 190 per kg, while bottle cap costs have increased from Rs 0.22 to Rs 0.40 per unit. PVC sleeve prices have gone up from Rs 0.20 to Rs.0.30, and label costs have increased from Rs 300 to Rs 430 per kg. Corrugated box prices rose from Rs 11 to Rs 14 per unit, while shrink film costs surged from Rs 115 to Rs 250 per kg.

Adhesive tape prices have also increased from Rs 280 to Rs 400. Addressing the media, association president Pinnamaneni Dhanaprakash and general secretary A Srinivas said that the cumulative rise in input costs has significantly impacted production. They advised members to increase prices by around Rs 25 per case. They added that the packaged drinking water market in the State is estimated to be over Rs.140 crore and plays a crucial role, especially during the summer when consumption peaks. The usage is higher in urban areas compared to rural regions. They said the price hike has become unavoidable and appealed to distributors and consumers to cooperate with the revised pricing.