June 18, 2024
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Deal with cedi depreciation or we shut down – Packaged water producers to government

The National Association of Sachet and Packaged Water Producers says it will be compelled to shut down production and distribution of water if government does not address the continuous depreciation of the Cedi. 

According to them, continuous increase in fuel prices and the high cost of electricity is also impacting businesses negatively. 

The Association in a press statement issued on Thursday, October 20 enumerated some of their production cost. 

“It is important to note that packaging alone forms about 60% 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% of the product cost as of the third quarter of last year. 

“Due to the high increase in diesel and other petroleum products, diesel fuel for distributing packaged water to consumer centres now exceeds 25% of the product price.

“Electricity cost which used to be around 15% of the product price has increased to 20% of the product price as a result of the recent increase in utility tariffs.”

It added that its members may be forced to adjust their prices upward if the situation persists.

It explained that its members cannot continue to stomach the increases in their production chain. 

“The leadership of the packaged water industry will continue to update the public on the challenges, and if the government did not attend to the call by a week from today, we will have no option but to pass on the cost to the public and possible shutdown of production and distribution for a week across the country.”

Source myjoyonline.com

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