The Water Producers Association of Nigeria (WAPAN) has said the current increase in prices of processed packaged water was due to the hike in prices of raw materials used in producing the products.
It was observed in Lagos State that distributors before now sell a bag of 20 sachets of processed packaged water (pure water) for N100 but now they sell for N120 per bag while five bags that sell for N500 is currently N600 as well as 10 bags which was N1,000 is currently N1,200.
Also, retailers have increased a bag from N150 to between N170 and N190 in some areas in the state.
Egberi Odiri Mackson, National President of WAPAN, disclosed this in a chat with newsmen
Mr Mackson said: “The current N1,200 for 10 bags is still below the cost price due to the high cost of raw materials, asking consumers to “please bear with the association” on the situation on the ground.
Mr Femi Daramola, a member of the association who produces packaged water in the Amuwo-Odofin area of Lagos, told this medium that the increase in prices of raw materials has restricted him to reduce the number of quantities being produced also.
He admitted that has not been able to meet up with the market demand from his distributors.
He said: “The price of raw materials such as the nylon used for the sachet water has gone up as well as the PET bottles.
“Just I last week, I received a call from one of my distributors who requested for 500 packets of the normal 75cl and I told her I can’t meet up with the exact quantity she was requesting for so, I had to send her the quantity I was able to produce with the availability of what I have on the ground.”
Also, an employee of Branca Water in Festac Town, one of the popular brands in Amuwo-Odofin, who pleaded for anonymity, said the company has been selling at a loss since the beginning of February 2021, adding that they have to wait for the association to approve the increment.
“We have been selling at a loss since early February this year but being a company registered under an association we had to wait for the body to approve and signal members to start selling at the approved price.
“Even outside Lagos, a bottle of the 75cl sells for N100 but here in the state, some sell for N60 and N70 when before it was N50,” the employee said.
Another producer in the area explained that one of the reasons for the hike in prices of raw materials was that the Chinese suppliers have increased the prices of what they used to sell to them, so they are left with no option other than to apply the same marketing principle.
Consumers who bear the brunt of the hike have been buying because water is essential in food consumption, said a retailer