The leadership of the Ghana Plastic Manufacturers Association (GPMA) and the National Association of Sachet and Packaged Water Producers (NASPAWAP) have assured Ghanaians that the intended increase in sachet water prices has been suspended with immediate effect.
The groups stated that despite a sharp rise in production costs, they have agreed to absorb the additional expenses and maintain current prices for at least a couple of months, even though this means operating at a loss.
They explained that the decision demonstrates their patriotism and confidence in the country’s economic direction, urging stakeholders and citizens to support efforts to strengthen the economy.
The leaders also urged all producers, retailers and distributors to revert to the old pricing structure, effectively cancelling the previously announced increases.
This announcement was made at an emergency meeting conveyed by the Ministry of Trade, Agribusines and Industry to address the underlying challenges facing the sector last Wednesday in Accra.
Meeting
The over-four-hour meeting, chaired by the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, ultimately yielded a positive outcome.
In attendance were the President of GPMA, Ebo Botwe, the President of NASPAWAP, Magnus Nunoo, Director, the West African Regional Centre, Appiah Kusi Adomako, the Chairman of Sintex Group, Manoj Budhrani, the Director of Finepack Industries Ltd, Rahul S. and the Chairman of Mohinani Group, Ashok Ramchand Mohinani.
Assurance
The president of GPMA explained that the cost of polymers — key raw materials used in producing sachet packaging—has risen dramatically, jumping from about $920 per ton to roughly $2,100 per ton.
This surge, he said, was partly linked to global tensions and market disruptions preceding the US-Israel-Iran conflict, placing significant financial pressure on manufacturers.
He added that, due to these rising costs, plastic manufacturers had initially considered increasing prices, which would likely have led sachet water producers to follow suit.
However, he said that after the sector minister’s invitation to discuss, the association reconsidered its position.
Unprecedented
President of NASPAWAP, Magnus Nunoo, described the development as unprecedented in the association’s 30-year history, noting that price increases are typically accepted without resistance.
He said the decisive intervention by the Trade Minister led to a different outcome.
He also credited her persistence and resilience for securing favourable conditions for both producers and consumers.
Mr Nunoo expressed deep appreciation for the minister’s determination and proactive approach, emphasising her refusal to accept the situation as inevitable.
Acknowledgement
Responding, the Trade Minister acknowledged manufacturers’ concerns about rising costs but noted that the country’s economy has enjoyed relative stability over the past 14 months, which has helped cushion industry players.
In light of this stability, she appealed to manufacturers to, in turn, support Ghanaians by absorbing short-term losses.
The minister emphasised that economic cycles entail both gains and losses and expressed optimism that conditions would soon normalise, allowing businesses to recover and continue to earn returns on their investments.
Mrs Ofosu-Adjare commended the industry players for responding positively, agreeing to maintain current prices for the next few months to sustain affordability and economic balance.
Source:
www.graphic.com.gh