Production and distribution of bottled water have declined by 40% over the last few weeks. The packaging industry in Iran is highly dependent on the import of its raw material to produce plastic packages. The recent currency crisis has led to limitations on importing such materials for plastic bottles.
The Head of Beverages Producers’ Association, Peyman Foruhar, tells Ghanoon daily that: “The price of PET (the raw material for plastic bottle production) has lately reached 230.000 rials for each kilogram. This price previously was 45.000 rials. 500% growth in raw material prices has made producers unable to keep their plants operating. Intermediaries are using this opportunity to increase their profit as high as possible, no matter what producers may face”.
Ghanoon writes that several food producers are complaining of not being able to import the needed packaging material and therefore had to put their production on hold.
The CEO of Tabarok Company, a food producer, Alireza Bustani, says: “Several raw materials for packaging Mayonnaise have became unobtainable at the market. The situation is worse at the companies which process seasonal foods or products. They have their production ready but lack the packaging material. It will hurt both the farmers as well as the food producers. So far, the water and vegetable-oil producers have been mostly hit. 70% of the bottled water producers have currently shut down”.
On Monday the Government has announced new foreign currency policies. According to these new policies, industries are free to import their needed products at the market exchange rate. Several producers who faced shortages of their raw material hope to find an immediate solution under new rules.