Iran-Israel War: This is the second month of the ongoing war between Iran, Israel and America. This is already having a negative impact on oil supply around the world, causing fuel prices to rise. This blockage caused by the blockade of the Strait of Hormuz is affecting oil, agriculture, aviation, chemical and many other industries. Now, India’s bottled water sector may also have to face supply-related challenges.

Bisleri, the largest company in this sector in India, has recently increased the prices by 11 percent, due to which the price of a box of 12 one-litre bottles has increased by Rs 24. Other brands like Bailley and Clear Premium Water have also increased their prices.

Bisleri CEO Angelo George told Reuters, “The price of packaged drinking water has increased to Rs 20 per liter due to a huge increase in the cost of packaging material. The cost of packaging material has increased by more than 70 percent in the last fortnight.”

Why is the price of mineral water increasing?

Amidst the war in Iran, the price of packaged drinking water in the country is increasing because the PET bottles used for bottled water are made from polymers derived from crude oil. Due to the war, polymer prices have increased by almost 50 percent. Due to this, the price of plastic granules has increased from Rs 115 to Rs 180 per kg. A BBC report quoted Vaibhav Saraogi, director of Chemco Plastic Industries Pvt Ltd, as saying, “The increase in prices of PET preforms impacts the entire packaging industry, not just bottled water.” PET packaging is used extensively in beverages, food delivery, medicines and cosmetics.

Difficulties increased for India

According to a study by ‘Data for India’, about 15 percent of urban households and 6 percent of rural households depend on bottled water to meet their drinking water needs. President of Maharashtra Bottled Water Manufacturers Association, Vijay Singh Dubbal also cited the rising prices of crude oil as the reason for the cost of bottled water. “The price of preform has increased from Rs 115 per kg to around Rs 180 per kg. Also, the supply of preform has also reduced,” he said.

He further said that about 20 percent of the bottle manufacturing plants in the state have been temporarily closed. This is a worrying thing because the availability of clean water in India still remains a challenge. According to reports, about 70 percent groundwater is contaminated. In such a situation, urban and rural families depend on bottled water, which is now becoming expensive due to the oil crisis caused by the war.

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