• Source:JND

The ongoing conflict between the US, Israel, and Iran is now in its second month. It has already hit global oil supplies hard, driving fuel prices higher. The disruption, caused by blockade of the Strait of Hormuz, is affecting several industries, including oil, agriculture, aviation, chemicals and others. Now, India’s bottled water sector is also expected to face supply challenges.

Bisleri, India’s market leader, recently hiked prices by 11 per cent, making a box of 12 one-litre bottles cost 24 rupees more. Brands like Bailley and Clear Premium Water have also raised costs. Angelo George, CEO of Bisleri, told Reuters, "The price of packaged drinking water has risen to 20 rupees per litre, due to a significant increase in packaging material costs, which have surged by over 70 per cent in the last fortnight."

How Is The Conflict Driving Up Water Costs In India?

The rising costs are largely due to plastic production, which depends on crude oil, which is majorly imported. As a result, PET (Polyethylene Terephthalate) resin pellets, which are used to make plastic bottles, have become more expensive as oil prices hit nearly USD 119 per barrel.
A BBC report quoted Vaibhav Saraogi, director of Chemco Plastic Industries Pvt Ltd, as saying, “A surge in PET preform prices impacts the whole packaging industry, not just bottled water,” PET packaging is widely used in beverages, food delivery, pharmaceuticals, and cosmetics.

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According to a study by Data for India, about 15 per cent of urban households and 6 per cent of rural households depend on bottled water to meet their drinking needs. Vijaysinh Dubbal, president of the Maharashtra Bottled Water Manufacturers Association, also attributed the reason for bottled water becoming expensive to surging costs of crude oil. "The cost of preforms has increased from 115 rupees a kg to around 180 rupees per kg. There is also a shortage in the supply of preforms," he said.

Why Is It Concerning?

Dubbal further stated that about 20 per cent of bottle manufacturing plants in the state have temporarily shut operations. The issue is concerning as access to clean water remains a challenge in India. According to reports, nearly 70 per cent of groundwater is contaminated. Urban and rural households rely on bottled water, which is now becoming costlier due to the war-driven oil crisis.

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