Packaged drinking water prices rise in Tamil Nadu amid West Asia tensions

Prices of packaged drinking water in Tamil Nadu have begun to climb as the ongoing conflict in oil-producing regions of West Asia drives up the cost of key raw materials.

What initially affected the hospitality sector is now being felt more widely, with households increasingly burdened by rising prices of 20-litre water cans and bottled water. The increase has been largely attributed to higher costs of petroleum-based inputs used in plastic manufacturing.

Industry participants point to a sharp rise in the price of polyethylene terephthalate (PET), a derivative of crude oil commonly used to produce water bottles and large containers. Supply constraints have further compounded the issue, pushing up manufacturing costs.

As a result, the price of 20-litre water cans has increased by around Rs 5 in many areas, while some major brands have implemented hikes of up to Rs 10 per unit. Bottled water prices have also risen, with wholesale cases now costing Rs 20 to Rs 30 more than earlier.

Tamil Nadu is home to nearly 1,500 packaged drinking water units serving an estimated 1.5 million consumers who depend on 20-litre cans for daily use. However, limited availability of plastic container manufacturers in the state has led to supply bottlenecks, affecting production cycles.

Producers typically require a continuous supply of new containers each week, making operations highly sensitive to disruptions in raw material availability. With input costs climbing, retailers across cities such as Chennai have already begun passing on the burden to consumers.

In many areas, the price of a 20-litre can has risen from about Rs 20 to Rs 25, and industry observers caution that further increases are likely if supply pressures persist.

The rising cost of drinking water is beginning to strain household budgets, particularly in urban centres where reliance on packaged supply is higher. Additional delivery charges are also adding to the monthly expense.

Experts warn that while fuel prices have so far remained stable, any increase in petrol or diesel rates could further inflate transportation costs, potentially triggering another round of price hikes in the coming weeks.

With IANS inputs