New Delhi: The situation in India has become increasingly challenging as soaring temperatures and global supply pressures have driven up the cost of essential commodities such as bottled water and beer. With temperatures expected to exceed 45C in several regions, demand for drinking water and beverages has surged, placing additional strain on supply chains.
India’s bottled water industry, valued at around $6 billion (£4.5 billion), has already begun to feel the impact. Major brands have increased prices, while manufacturers are struggling with higher input costs. The rise in crude oil prices has significantly affected the cost of producing plastic bottles, as petroleum-based materials are essential for packaging.
A key factor influencing prices in India is the disruption in global energy supply routes, particularly through the Strait of Hormuz. As fuel prices have increased, the cost of polyethylene terephthalate materials used in bottle manufacturing has surged. This has led to shortages in supply, forcing some production facilities to reduce or temporarily halt operations.
The rising costs have not been limited to bottled water. In India, the beverage sector, including beer production, has also been impacted. Glass manufacturers have reported increased production costs due to reduced natural gas availability, which is essential for running furnaces. As a result, brewers have sought permission to increase prices to offset rising expenses.
Despite these pressures, some companies have continued to absorb costs to avoid passing the burden directly onto consumers. However, industry experts have warned that this approach is unlikely to be sustainable if current conditions persist.
With peak summer demand approaching, India is expected to face further challenges in maintaining supply and price stability. The combination of extreme weather and global energy disruptions may continue to push up costs, affecting both businesses and consumers across the country.
TRENDING | NASA launches Artemis II crewed Moon mission
