Consumers are facing an additional financial burden after the price of raw materials used in the water industry increased by 40 percent due to ongoing tensions in West Asia.
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The Nepal Water Industries Federation has decided to adjust the prices of bottles and jars after the price of raw materials used in the water industry has increased by 40 percent due to the ongoing tension in West Asia. The federation has issued a press release on Saturday urging industrialists to adjust the price of produced water in proportion to the current increase in the price of raw materials and operating costs.
The supply of petroleum products has been affected due to the ongoing tension in West Asia, and its ancillary products have also been affected. The prices of bottles, caps, wrapping rolls, jars, jar caps and other raw materials used in the water industry have increased by up to 40 percent.
Although the price of jars and water bottles will increase due to the high cost of raw materials, the price of water will not increase, says Bikram Limbu Chemjong, president of the federation. However, consumers will feel the increase in the price of water. 'The price of jars and bottles will increase, not water, but since consumers pay for water, they will definitely experience the increase in the price of water,' he said.
The federation has also stated that the letter of credit (LC) for importing raw materials used in water has not been opened for three months and the raw material stock in the country is negligible. 'The Federation of Nepal Water Industries requests all member industrialists to adjust the price of the produced water in proportion to the current increase in the price of raw materials and operating costs,' the statement said.
However, the federation has requested the Department of Commerce, Supplies and Consumer Protection on Chaitra 9 to adjust the price of jar/bottle water. The federation has requested that the price be set at Rs 20 per bottle within the Kathmandu Valley and Rs 25 outside the valley. Similarly, it has requested that the price be set at Rs 60 per jar and Rs 80 outside the valley.
According to the federation, there are more than 620 processed drinking water industries across the country. The federation has stated that more than 30,000 people have been directly employed through these industries and that more than Rs 16 billion has been invested in them.
The federation believes that the price of raw materials has increased by more than 40 percent, the transportation cost has increased significantly due to the excessive price hike of diesel and petroleum products, and the inconvenience in the supply of raw materials has caused the operating cost of the industry to increase unnaturally.
The Drinking Water and Sanitation Tariff Commission has stated that the federation itself will not be able to fix the price of jar and bottled water. The federation itself and the commission itself cannot fix the price, said the chairman of the commission, Rudra Prasad Gautam.
'The federation cannot fix the price arbitrarily, we cannot fix it so that we can sell at this price,' he said. 'The federation or the industrialists will have to submit a proposal to the commission, including current expenses, capital expenses and total costs,' he said. 'The commission will fix the price after examining the proposal received by the commission and taking into account the purchasing power of the consumers.' He said that if the federation sets the price, it will not be legal and even the commission cannot set the price without a proposal.
According to Rule 37 (b) of the Drinking Water and Sanitation Regulations 282, the commission has been given the authority to set the wholesale drinking water purchase and sale rate and according to Rule 37 (c), the maximum selling price of tanker and bottled water has been determined.
In the country, in 2077, the Industry and Commerce and Labor and Consumer Welfare Committee of the House of Representatives formed a subcommittee to study the price of water. The subcommittee had set the price of jars and bottled water and submitted its report. The committee had also directed the Department of Commerce, Supplies and Consumer Protection to implement it accordingly.
Since then, it has been directed to set a maximum price of Rs 47 per jar in the valley and Rs 60 outside the valley. The retail price has been set at Rs 16 and Rs 20 outside the valley. The Department of Commerce, Supplies and Consumer Protection has repeatedly urged not to charge more than that price.
