Unbearable cost: Sachet water producers to shut down production
The Enugu State Chapter of the Association of Table Water Producers (ATWAP) has announced plans to increase the price of a bag of sachet water to N300 due to “unbearable cost of production”.
Members of the association have also commenced shutting down of operations for three days as a result of unbearable cost of production.
Tony Edike, chairman of ATWAP disclosed this in a joint statement issued by himself and Clems Nwamadi, state secretary in Enugu.
This was among the decisions made at the association’s emergency meeting on February 8, in Enugu on the issues facing all of the association’s members.
All producers of table water, including those who produce sachet water and pet bottles, were instructed to cease operations and cease manufacturing starting on Monday, February 12 till Thursday, February 15, 2024.
“The current harsh economic situation in the country especially as it affects materials and other logistics for the production of table and sachet water in the state were critically reviewed.
“After hours of deliberations on the overwhelming challenges being encountered by ATWAP members, especially the over 500 percent increase in the prices of raw materials and other factors of production, we have to come to this decision.
“The 500 percent increase in prices of raw materials, which included: nylon, parking bags, purifying materials, procurement of water from boreholes located outside the city, diesel, high electricity tariff, haulage transportation and other maintenance staff cost.
“Also the upward review of various fees charged by both agencies of the state and local government areas within our areas of operations, was another strong reason.
“ATWAP received field reports from different association zones indicating that a high number of producers had closed their factories as a result of high material costs and other production issues, which had raised the member death rate.
“With effect from February 16, 2024, a bag of sachet water (20 sachets) will be sold at #300 to enable the producers sustain their operations and rescue their businesses from total collapse,” the statement said.