 |
| NASPAWAP threaten price increases & production halt. |
In response to the growing cost of fuel and the depreciating cedi, the National Association of Sachet and Packaged Water Producers (NASPAWAP) has threatened to shut down production.
The Association claims that the price of fuel and the
continued depreciation of the Ghana cedi versus the dollar are having a
negative impact on the packaged water business.
A statement issued by the Association and signed by its
President Magnus Nunoo said: “The packaged water industry relies heavily on
imported plastic pallets/granules used in the manufacture of the Polythene
films and pet bottle preforms, that are used to package the treated water for
consumers.
“It is important to note that Packaging alone forms about 60
percent 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 percent of the product cost as at the third quarter of last year.”
It indicated that: “Due to high increase of diesel and other
petroleum products, diesel fuel for distributing packaged water to consumer
centres now exceeds 25 percent of the product price,” while, “electricity cost
which used to be around 15 percent of the product price has increased to 20
percent of the product price as a result of the recent increase in utility
tariffs.”
The Association, therefore, issued an urgent plea to
the government to take immediate action to rectify the situation.
It wants the government to: “reduce taxes on the packaging
materials for the industry, review the import and customs duty formula for the
raw materials imported for the packaged water industry,” and “freeze payment of
VAT, excise tax and other taxes on the packaged water industry.
“Freeze government charges and fees for the packaged water
industry and if possible, subsidise electricity and water bills of the
industry, remove completely all taxes on reusable jar bottles used for the
dispensing machines,” and “call on the bank of Ghana to be circumspect in the
adjustment of the policy rate which is increasing the cost of borrowing from
the banks to the businesses,” the Association has demanded.
It further indicated that: “Calling on the packaged water
producers across the country to shut down production and distribution for a
couple of days to press home our demands may have been the obvious thing to do
but as an essential product provider, we are mindful of the repercussion of
such action and the health hazards it can pose to the citizens, more especially
as most of the river bodies are highly polluted and most households depend on
packaged water as the main drinking source, reported by the Ghana Statistical
Service.”
It continued: “It is important that the public, CSOs, the
heads of faith-based organisations, NGOs, Parliament of Ghana, Diplomatic
missions, and Others, support the packaged water industry by calling on the
government to heed to the plight of the industry.”
The Association also gave the government a week to address its
concerns else, it “will have no option than to pass on the cost to the public
and possible shutdown of production and distribution for a week across the
country.”
Also Read: Sachet water prices, others to increase from October 31.
Source:
ghananews.hrforum.uk
.jpeg)
0 Comments