The sachet water industry is being suffocated to a slow death by what producers in the Ashanti region have described as “an unhealthy practice of price competition.” Regional Chairman of the National Association of Sachet and Packaged Water Producers Frederick Akwasi Berfi says water sachet retailers are raking in exorbitant profit at the expense of producers due to price undercutting. “The sad reality is that our industry, which offers so much employment, is dying slowly with companies collapsing at an alarming rate for the simple reason of poor pricing”, he decried. The current prices of pure water took effect from August 4, 2011 in the Ashanti region, with a sachet selling at 10 pesewas, up from the previous 5 pesewas and a retail price of Gh¢1.50 per bag of 30 sachets. The Association cited the rising costs of raw materials and utilities essential to the production and distribution of water sachets as the cause of the upward adjustment. The increment, according to the Association, was meant to help the producers maintain the highest quality standards and ensure that they remained in business. Hpwever, some producers have flouted the directive and opted to sell below 10 pesewas. A special taskforce instituted to regulate price undercutting had to be withdrawn following an intervention by the Kumasi Metropolitan Assembly. The Assembly maintained that no group has the right to compel business operators to sell products at a controlled price in a liberal economy. Eric Justice Forson, Vice Chairman of the Producer’s Association, says political interference has been the bane of the industry. According to him, new entrants and other producers flaunted regulations and compromised quality to produce at a lower cost to the detriment of consumers and other producers. About 80 percent of the over 800 sachet water producers in the Ashanti region belong to the Association. “Unfortunately, there are some of our members who think that they will thrive on the demise of others. That is short sightedness, they’re being myopic and such people’s attention has to be drawn to the fact that they are equally vulnerable”, stated Mr. Akwasi Berfi. “If we don’t something about our situation, very soon we’ll be out of the market.” Members are scheduled to hold a meeting later this month to evaluate the impact of fixed prices on their operations.