A recent investigation by the Bangladesh Competition Commission (BCC) has exposed alarming practices by the country's leading bottled water companies, resulting in an unjustifiable rise in bottled water prices. Between January and September 2023, the price of a half-litre bottle increased from Tk.15 to Tk.20. The companies claim that rising import costs, higher raw material prices, and fluctuations in the dollar's value justify the price hike. The BCC's investigation, however, paints an entirely different picture.
The actual increase in production costs was found to be minimal and insufficient to justify such inflated profits. For instance, Akij Food & Beverage's Spa brand saw a staggering 420 per cent profit increase, despite production costs rising by just 18.33 per cent. Coca-Cola's Kinley brand experienced a 212 per cent profit hike, even though the production cost per bottle rose by only Tk1.624. By collectively setting unreasonably high prices, in violation of the Competition Act of 2012, these companies undermined fair competition and prioritised profits over the wellbeing of the population. This is one instance of how the consumers have remained vulnerable to profiteering corporations.
Bottled drinking water was virtually unknown in Bangladesh until the devastating flood of 1988. The flood contaminated water sources, leading to widespread water-borne diseases, particularly hepatitis. In response, the public lost trust in the water provided by the Water and Sewerage Authority (WASA), creating an opportunity for private businesses to capitalise on this crisis. What began as a temporary solution to a national emergency has since evolved into a permanent feature and lucrative business, with bottled water becoming an indispensable commodity.
The pertinent question remains: why did this situation become permanent? Once the crisis time passed, it was assumed and expected that WASA would reassess and improve the quality of the water it supplied. Instead, the public was made permanently dependent on bottled water. Commercial ventures quickly mushroomed and multiplied, offering 'safe' drinking water at increasingly higher prices.
Access to water, like air, is the fundamental right of every human. Profit-driven aggression is therefore morally wrong and akin to paying for the air we breathe. The city dwellers are being doubly fleeced considering WASA water tariff has been increased 14 times in 13 years. Additionally, they cannot just drink it straight from the tap, but must spend extra money boiling it to make it potable (and we know the horrific cost of gas these days) or purchase a water purifier, bottled water, or jar water.
But despite the extra income the ever-rising water cost provides, WASA seemingly did nothing to win back the confidence of city-dwellers by supplying safe drinking water. Even more concerning is WASA's own entry into the bottled water business. This is problematic on many levels. Firstly, public bodies should not engage in profit-making ventures. Secondly, if WASA stands to profit from bottled water sales, it may lose its incentive to fulfill its primary responsibility of supplying safe drinking water to the public.
The rising cost of bottled water in Bangladesh raises serious concerns about corporate profiteering and the role of public utilities in safeguarding essential resources. With water - the essence of life - becoming an increasingly expensive commodity, consumers are left vulnerable to exploitation. Both private companies and public entities like WASA must be held accountable, ensuring that the public's access to safe, affordable drinking water is prioritised over profits.
Leonardo Di Vinci once said: "Water is the driving force of all nature." And he was right. Water is not only a necessity for survival, it's a basic human right. Regulatory frameworks must be prioritised and strengthened to protect this right for all.
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