War drives up bottled water prices in India, Modi's tax cut benefits swallowed by inflation

⑴ The shockwaves from the Iran war have spread from the crude oil market to the daily dining tables of ordinary Indian consumers. Due to the soaring prices of key raw materials for plastic bottles and caps, the price of bottled water in India has risen sharply, directly erasing the benefits brought to the public by Prime Minister Modi's previous tax reduction policy. ⑵ Bisleri, India's largest bottled water producer, has raised its product prices by 11%. The retail price of a box of twelve 1-liter bottled waters has increased from 216 rupees to 240 rupees. The company's CEO stated that packaging material costs have surged by more than 70% in the past two weeks, and the current situation is beyond anyone's control. ⑶ The direct driver of this price increase is the surge in oil prices caused by the war. The cost of polymer materials used to make plastic bottles has risen by 50% to 170 rupees per kilogram, while the price of bottle caps has more than doubled to 0.45 rupees each. At the same time, the prices of packaging materials such as corrugated cartons, labels, and tape are also rising. ⑷ The price hikes have completely reversed the price reduction effect brought by the Modi government's significant cut in the bottled water tax rate from 18% to 5% last September. The CEO of Clear Premium Water admitted that price adjustments have become inevitable, with the retail price of its products also rising by 8% to 11%. In this country, where groundwater pollution is a serious issue, clean drinking water is becoming increasingly luxurious.