The Association of Sachet Water Producers in the Ashanti region is taking legal action against members who are flouting directives to sell the commodity below approved prices.
About ten producers are currently before a disciplinary committee for engaging in price undercutting, barely a month after the new prices of sachet water came into effect.
Secretary to the association, Kofi Antwi-Adjei, tells Luv Biz Report the decision to prosecute erring members is part of measures to instill healthy competition in the industry.
The association defied public outcry to implement the new price adjustment of 10 pesewas per sachet and a retail price of Gh¢1.50 per bag of 30 sachets, citing rising cost of production and distribution of the commodity.
About 80 percent of sachet water producers in the Ashanti region belong to the association.
Mr. Antwi-Adjei says members who flaunt the directive to sell the commodity below the approved prices undermine the association’s quest to improve standards and promote the industry.
The disciplinary committee gives room for erring producers to defend any allegation.
According to the Secretary, legal action is taken against recalcitrant members in enforcement of the group’s rules and regulations.
“If we realize that the person is culpable, then the first stage the person would have to pay a fine of Gh¢1,000.00. If the person complies, we leave it there; then warn the person not to do it again. If he doesn’t then we move on and it will get to the last stage which is the court settlement”, Mr. Antwi-Adjei spelt out.
He cautioned members who engage in undercutting to desist from the practice in the interest of the industry.
Meanwhile, the association says the increase in prices has had a positive impact in operations.