Price increase of sachet, bottled water due to cedi depreciation – GPMA
The Ghana Plastic Manufacturers Association (GPMA) says the increase in sachet water and bottled water prices are as a result of the cedi depreciation against major currencies.
Speaking on Morning Starr with Francis Abban, President of the Ghana Plastic Manufacturers Association, Ebo Botwe indicated that the price of their raw materials has seen a marginal increase of between 20 to 30 percent on the back of the Cedi’s depreciation.
“Our raw material base is 100% import and this has seen marginal increase. The bottom line has got to do with the dollar rate. So in as much as the dollar goes high we might buy the raw but the exchange rate makes it very, very high. That aside we have also seen local content costs also skyrocketing. It is actually out of control.
“I think it should be on the laps of the government on how to stabilize the dollar. There is nothing we can do, and as business people we need to stay in business at least to break-even and therefore we will have to adjust prices as and when the dollar goes up,” Mr. Botwe stated.
He continued: “The prices of plastic have gone up marginally but the dollar a few months ago, where we were and where are we now with the dollar. It has to do much more with the foreign exchange.”
Sachet water and bottled water prices are expected to go up today Monday, September 19, 2022.
The National Association of Sachet and Packaged water Producers (Naspawap) in a statement said the adjustment is to help producers cover their production costs, on the back of the increasing cost of raw materials, fuel, and the cedi’s depreciation.
Iced sachet water is to be sold at 50 pesewas, ice bottled water 500ml to be retailed at 2ghc, and iced bottled water, 750ml or medium size, also to be retailed at 3ghc.
Also a bag of sachet water, 500ml by 30, will now sell at 7ghc from the retail trucks. Mini shops will now retail a bag of sachet at 9ghc per bag.
“We appreciate the difficulties our consumers have to go through to endure these hardships. We appeal to all to bear with us.” the statement read.