The anarchy of bottled water

The price of a half-liter bottle of water (slightly more than a glass) is 20 taka. A carton contains 24 bottles and costs 260 taka. I bought it myself from Karwan Bazar at this price. Retailers also buy it at the same rate. This means the purchase price of each bottle is less than 11 taka, and the retailer profits 9 taka per bottle!

In Dhaka, pure drinking water from WASA is available for only 80 paisa per liter. Since it is a government organization, it's understandable that subsidies are provided. But for companies selling bottled water, how much does it cost to produce each bottle? Is the total cost for half a liter of water, including the plastic bottle, more than 5-6 taka?

According to data from the Tariff Commission, it costs 3.67 taka to produce a one-liter bottle. The water purification cost is 1 taka, and labeling costs another 1 taka. Marketing and other expenses add up to 1.28 taka. In total, the cost to produce a one-liter bottle of water is 6.95 taka. However, in the retail market, each bottle sells for 25 to 30 taka. The production cost of a half-liter bottle is even lower.

On August 20th of last year, a report by the Bangladesh Competition Commission’s Market Monitoring Cell noted that bottled water prices were unusually high. The report stated that the monitoring cell inspected the Shantinagar market in Dhaka on 20/08/2023. During the inspection, it was found that the price of bottled water had increased. Popular brands like Kinley, Aquafina, Mum, Fresh, and Pran were being sold at a maximum retail price (MRP) of 20 taka for 500 ml bottles, whereas the previous price was 15 taka. Additionally, the wholesale price of a 500 ml bottled water was found to be 11-12 taka. In other words, retailers were charging 8-9 taka more per bottle than normal, according to the monitoring cell.

The same is true for one, one-and-a-half, and five-liter bottles. However, customers lose more when buying half-liter bottles than larger ones. But a consumer typically doesn't purchase one or one-and-a-half-liter bottles for personal use. They prefer the convenience of a half-liter bottle because it’s easier to carry and drink in one go.

Recently, hotels, restaurants, and cafes have stopped stocking bottles larger than half a liter. A one-liter bottle costs 30 taka. If three people sit down to eat, one liter is usually enough. But without the one-liter option, they are forced to buy at least two half-liter bottles, leading to an 18-taka profit for the seller. The retailer wouldn't make as much profit selling a single one-liter bottle. Also, having only half-liter bottles increases overall sales for the shop. In some cases, half-liter bottles are priced at 15 taka, but still sold at 20 taka at retail, especially at bus stops, launch terminals, train stations, and many restaurants and cafes.

In addition to bottled water, many hotels and restaurants sell jar water at a much lower price. According to experts, there isn’t much difference in quality between these two types of water. Water is collected from deep tube wells, purified, and then bottled or jarred. However, bottled water producers claim they provide water in 100% food-grade bottles, and that the cost of raw materials has increased in the international market. Yet, is it really reasonable or justifiable for a half-liter bottle of water to cost 20 taka?

Since January 2023, companies have suddenly increased the price of half-liter bottles from 15 to 20 taka. These companies cite increased import costs due to the rising dollar and raw material prices as reasons for this hike. However, an investigation by the Competition Commission (BCC) reveals that while import costs have only slightly increased, private companies have used this as an excuse to hike prices, raising profits by up to 420%.

Instead of debating what 20 taka can buy today, we should ask why in a country where groundwater is still plentiful and water from most rivers, canals, haors, ponds, and lakes can still be purified and consumed, people are forced to buy half-liter bottles of water for 20 taka. Is there a shortage of water in the land of rivers?

At an event on rivers held at the National Children's Academy last September 22nd, internationally renowned artist Shahabuddin Ahmed recalled how he used to drink water from many rivers in Bangladesh during his childhood, without fear of stomach problems. But now, not only can you not drink the water from Bangladesh’s rivers, but many rivers are so polluted that you can't even touch the water. The renowned artist, who has been living in Paris for many years, lamented, “In the land of rivers, we now buy water to drink; it feels like we’re living abroad.”

Therefore, we need to ensure that people in this land of rivers can easily access pure water on the streets, in shops, and in markets, and put an end to the anarchy surrounding bottled water. All restaurants should be mandated to provide clean water for free, so that customers don’t have to buy bottled water along with their meals.

Another major environmental hazard posed by bottled water is plastic pollution. How many of the millions of bottles produced are actually recycled? A large portion ends up contaminating the environment in various ways, flowing into rivers and seas, or seeping into the soil, damaging it and disrupting the natural flow of water. Considering this environmental threat, the bottled water business must be regulated. Not only because of the high prices, but also because in a country where much of the water from rivers, canals, haors, and ponds is still safe, and groundwater is still accessible, why should the people have to buy half-liter bottles of water for 20 taka? This question must be raised loudly.

It’s worth noting that after August 5th, one of the most frequently mentioned words has been ‘reform.’ The entire state needs reform, but the biggest reform is needed in the market for daily essentials.

Amin Al Rashid is a journalist and writer.