The National Executive Committee of the National Association of Sachet and Packed Water Producers (NASPAWAP) has threatened to seize production and distribution if government fails to address their key challenges.
The producers have made a clarion call to the government to, as a matter of urgency, take strategic steps to stabilise the exchange rate between the Ghana Cedi and the major foreign trading currencies.
They have also pleaded for major taxes to be reduced to enable them produce and distribute effectively nationwide.
The reason being that the water industry relies heavily on imported plastics refined to make bottles for packaging, which they said forms about 60% of production cost.
At a time when prices of diesel and petrol are skyrocketing, the producers said they have exceeded their budget by 10%; from 15% to now 25%.
Electricity cost, which used to be around 15% of the product price, has increased to 20% of the product price as a result of the recent increase in utility tariffs.
For a reduction, NASPAWAP said they are heavily dependent on the stability of foreign currencies, else their prices will inflate above 80%.
Based on the above backdrop, they are, therefore, calling on the government to freeze charges and fees on VAT, taxes on reusable jar bottles as well as review the import and customs duty formula for the raw materials imported for the packaged water industry.
The water producers have also reminded government of the need to call on the Bank of Ghana to be circumspect in the adjustment of the policy rate which is increasing the cost of borrowing from the banks to businesses.
Failure to address their challenges by a week will leave them with no option than to pass on the cost to the public and possible shutdown production and distribution for a week across the country.