Packaged drinking water prices rise as West Asia war affects input costs in Tamil Nadu

Tamil Nadu has around 1,486 packaged drinking water units, and nearly 15 lakh consumers rely on 20-litre cans.
Stacks of packaged drinking water cans piled up at a supermarket in Chennai, as prices rise across state.
Stacks of packaged drinking water cans piled up at a supermarket in Chennai, as prices rise across state.(Photo | Martin Louis)
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CHENNAI: The ongoing conflict in the oil-rich West Asian region has begun to impact households in Tamil Nadu, with packaged drinking water manufacturers raising prices amid a spike in input costs.

After disrupting hotel operations across the state, the ripple effects are now being felt by residents who depend on 20-litre water cans and bottled water.

E Saravanan, general secretary of the Greater Tamil Nadu Packaged Drinking Water Manufacturers Association, said the price of plastic containers has surged due to shortages in petroleum-based raw materials triggered by the conflict. PET (polyethylene terephthalate), used to manufacture bottles, is derived from hydrocarbons.

“A new 20-litre bubble-top container earlier cost Rs 100 to Rs 115. It is now priced at Rs 170. The cost of caps has also risen by about 50 paise each,” he said.

Following the increase, manufacturers have raised the price of 20-litre cans by Rs 5, while larger brands have hiked rates by up to Rs 10 per can. A case of bottled water now costs Rs 20 to Rs 30 more than before.

Tamil Nadu has around 1,486 packaged drinking water units, and nearly 15 lakh consumers rely on 20-litre cans. However, the state has only a handful of plastic container manufacturers, leading to supply constraints.

Saravanan noted that each unit requires 200 to 300 new cans every week. While fuel prices remain stable for now, any increase in petrol or diesel rates could further push up water prices due to higher transport costs. Retailers say the burden is already being passed on to customers. S Akash, a retailer in Choolaimedu, said a 20-litre can that was sold for Rs 20 at shops now costs Rs 25 and is likely to rise to Rs 30 from April 1.

Residents are feeling the pinch. M Vishnupriya, a Kodambakkam resident, said her family spends about Rs 500 a month on water cans, with delivery charges also rising alongside prices.

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