Sachet water prices to soar to N100 as production costs hit record highs

Date:

February 29, 2024.

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Azonuchechi Chukwu.

The Association of Pure Water Producers has expressed concerns over the skyrocketing prices of pure water sachets, warning that the cost may surge to N100 if urgent measures are not taken.

According to the association, the sharp increase in the cost of production materials has dealt a severe blow to their operations.

In December 2023, materials that were purchased for N1,100 per kilogram have now surged to a staggering N3,600 to N3,700 per kilogram. This astronomical rise, coupled with the exorbitant pricing strategies of nylon producers, is placing an unbearable burden on pure water producers.

A spokesperson for the association lamented, “The frequency at which nylon producers increase prices is outrageous. Increments of N550,000 can occur three times within one week.

This leaves us with limited options as we grapple with the rising costs of production materials, not to mention the escalating expenses associated with treatment.”

The spokesperson further explained the financial challenges faced by pure water producers, noting that many resort to external funding or borrowed capital.

Banks, wary of the industry’s financial instability, are reluctant to grant loans to pure water sachet producing companies.

“This business is highly addictive. The passion behind it makes it difficult for us to leave, even when running at a loss.

We want Nigerians to understand that every water producer is facing the same predicament. With costs escalating and loans hard to come by, we find ourselves at a crossroads,” added the spokesperson.

Drawing attention to the alarming trend, the association emphasised that if the situation persists, pure water sachets might be priced at an unprecedented N100 per sachet. The  association stressed its reluctance in such an escalation, expressing the desire to keep prices affordable for Nigerians. (www.naija247news.com).

Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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