By Eyasu Zekarias

The sudden bump in the price of bottled water products is as a result of demand of raw materials claim manufacturers while on the other hand, at the end of the chain, traders attribute the increase due to new rates of distributors. 

In the past three weeks, Capital’s market survey has deduced that the price of bottled water products has increased by 5ETB.  

Half a liter of water, which used to be sold at 10 birr, is now 15 birr, and likewise to other quantities that used to go for 25 birr has gone up to 30 birr. According to data, there are about 108 factories engaged in water production in the country. However, it is said that the number of those who are working in this space is constantly changing due to various reasons.

As Eyob Mengesha, Director of Daily Water Sales and Marketing, informed Capital, the price increase is due to the increase in raw materials and the revised excise tax rate.

On their end, Africa Water Producers claimed that, “All products have not been increased by more than one birr.” In addition to this, they underlined that the market price is beyond their control.  Furthermore, they placed the blame on merchants who they claim get the profit far beyond any manufacturer.

On the other hand, Capital gathered from Arki Water that, “Arki has not made any price increase to the previous amount.”

As traders revealed, prices have gone up and in terms of cost of distribution, it has risen by 3 birr.

Along the price chain, sources that Capital spoke to in regards to the distribution cited that the price increase was due to various causes including the increase in fuel costs. They pointed out the cost was increased to compensate for the same when sold to traders, but they were reluctant to reveal the increase in price points.

 As Ashenafi Merid, Ethiopian Beverage Manufacturing Industries Association Manager, informed Capital, there has been an increase in the price, and stated that, “The plastic bottles are made from oil by-products, due to the global increase in oil products, the high excise tax, and the lack of loans for the manufacturers to operate, price adjustments have been made to en-capsule the same.”

In addition, the manager of the association said that since the unjustified price increase in the market is exaggerated, he has submitted a request to the relevant parties to control it, and is awaiting action to be taken.

Capital’s efforts to get information about this matter from the Minister of Trade and Regional Connections were unsuccessful.