The ongoing conflict involving the United States, Israel and Iran has entered its second month, significantly impacting global oil supplies and pushing fuel prices higher.
The disruption, triggered by the blockade of the Strait of Hormuz, has affected multiple sectors including oil, agriculture, aviation and chemicals. India’s bottled water industry is now also facing supply pressures.
Bisleri, the market leader, has increased prices by around 11 percent, raising the cost of a box of 12 one-litre bottles by Rs24. Other brands such as Bailley and Clear Premium Water have also followed suit. Bisleri CEO Angelo George told Reuters that packaged drinking water prices have risen to Rs20 per litre due to a sharp surge in packaging material costs, which have increased by over 70 percent in recent weeks.
How the conflict is impacting water prices
The price rise is largely linked to plastic production, which depends on crude oil—mostly imported by India. As crude prices have surged to nearly $119 per barrel, the cost of PET (polyethylene terephthalate) resin—used to manufacture plastic bottles—has increased significantly.
A BBC report quoted Vaibhav Saraogi, Director of Chemco Plastic Industries Pvt Ltd, saying that rising PET preform prices are affecting the entire packaging industry, including beverages, food delivery, pharmaceuticals and cosmetics.
According to a study by Data for India, nearly 15 percent of urban households and 6 per cent of rural households rely on bottled water for drinking. Vijaysinh Dubbal, President of the Maharashtra Bottled Water Manufacturers Association, said the cost of preforms has jumped from Rs115 per kg to around Rs180 per kg, along with a supply shortage.
Why it is a concern
Dubbal added that nearly 20 percent of bottle manufacturing units in the state have temporarily shut down operations due to rising costs and supply constraints.
The situation is particularly concerning as access to clean drinking water remains a challenge in India, with reports suggesting that nearly 70 percent of groundwater is contaminated. As both urban and rural populations depend on bottled water, rising prices driven by the oil-linked crisis are adding to the burden on consumers.