Fiji: US bottled water exporter finally pays up

A US bottled water exporter that had enjoyed a de facto tax free status in the Pacific island nation of Fiji since 1995, has finally been forced to pay up.

Once dubbed as “bottled insanity” by environmentalists, FIJI Water has been linked to tax evasion, political intrigue, and greenwashing.

Water Resource Tax

Fiji earned a record high 4.4 million Fiji dollars (US$ 2.5 million) in the first four months of 2011 from the Water Resource Tax imposed on bottled water companies. According to FGB News this is thanks to the first payment since the Water Resource Tax came into effect by Fiji’s largest bottled water exporter – FIJI Water.

The total amount in water taxes collected in 2009 and 2010 was only 295,000 Fiji dollars (US$ 166,000) and 469,000 Fiji dollars (US$ 265,000) respectively.

In 2010, FIJI Water threatened to shutdown operations after the government increased the water extraction tax from one third of a cent per litre to 15 Fiji cents (8.5 US dollar cents) a litre. The tax only applies to companies bottling more than 3.5 million litres per month and FIJI Water happened to be the only company that met this requirement. While the company was able, in 2008, to thwart an attempt by the government to impose a similar but higher water tax of 20 Fijian cents per litre, it finally agreed to pay up in 2010.

Investigative journalists at Mother Jones have been reporting on FIJI Water since 2009

India, Chennai: one third of residents rely on bottled water

Despite a significant increase in public water supply, one million families in Chennai, about a third of the city’s population, rely on sachets, PET bottles and cans of water for daily consumption. Sales of packaged water continue to soar in a state that already has 680 licensed private drinking water units.

The sale of packaged water has shot up to 6 million litres per day from 4 million litres in 2010, according to the Tamil Nadu Packaged Drinking Water Association. Now even consumers in low-income groups are purchasing water cans and sachets. At least 3.5 million litres of water are sold in cans every day.

Complaints about irregular supply and poor water quality are rife in several of Chennai’s residential areas.

Said S Anand, a resident of Gandhi Nagar in Pulianthope, “The water supply from the community tap is not sufficient to meet domestic needs. If the water is not tapped during high pressure, it stinks. It is wiser to spend money on good quality water than pay a huge sum at the hospital, later.” Areas like Korukkupet, Pulianthope, Choolai, Pattalam and Jamalia face complaints of poor quality water. In several homes, bubble top water containers have found [a] permanent place in the kitchens.

Prices for packed water range between 25 and 80 rupees (US$ 0.56 to US$ 1.78) for 20 litres.

Related web sites:

• Metrowater
• India Water Portal – Bottled Water

Source: Julie Mariappan, Times of India, 12 Apr 2011

Philippines: lawmaker wants bottled water classified as ‘basic necessity’

An administration lawmaker pushed [on 13 August 2010] for the inclusion of bottled drinking water in the list of “basic necessities” under The Price Act, to protect the public against hoarding and profiteering during severe shortages, calamities and similar emergencies.

“Due to harsh climate change, the lack of essential water resources in general and safe drinking water in particular is bound to worsen in the months ahead,” Pasig City Rep. Roman Romulo said in a statement.

Whenever clean water becomes scarce due to a prolonged dry spell, or as an offshoot of widespread flooding, bottled drinking water would be highly susceptible to illegal price manipulation, he said.

India, Mumbai: soon, bottled water may replace public taps

The state of Maharashtra plans to replace public water taps in the slums of its capital Mumbai by safer bottled water. Maharashtra also hopes to generate an extra US$ 171 million to improve rural water supply through a one Rupee (2 US dollar cents) surcharge on bottled mineral water. The plans were presented by Maharashtra’s water supply and sanitation minister Laxman Dhobale.

Slum dwellers will have to purchase drinking water at Rs 5 (11 US dollar cents) for a 20-litre can.

“Though it is dearer than tap water, it would help us in sorting out sanitation problems and control waterborne diseases,” Dhobale said. “Public water taps in slum pockets are the epicenter of unhygienic conditions due to the accumulation of water and mud.

The percentage of water contamination is also huge. The water booths will help us overcome such conditions and help in supplying pure water to the slums.”

Dhobale added, “Water supplied through the government machinery and municipal corporations is supplied at Rs10 [21 US dollar cents] per 1,000 litre, which is too cheap. But the residents will have to bear the additional cost for pure water.”

The minister also plans to earn Rs 8 billion (US$ 171 million) for the state by levying a surcharge on mineral water bottles.

“As per last year’s figures, mineral water consumption in Maharashtra is nearly 800 crore [8 billion] bottles per year. If we levy a surcharge of Re1 [2 US dollar cents] per one-litre bottle, Rs800 crore could be added to the state coffer.

The amount can be further used for bringing about an improvement in the water supply system,” he said.

The surcharge will be used to set up a laboratory for monitor water quality and to water treatment equipment for rural areas. Dhobale said he would present the proposal in a Cabinet meeting within two months.

Related web site: Maharashtra – Water Supply and Sanitation Department

Source: Surendra Gangan, DNA, 08 Jul 2010 ; Santosh Andhale, Mumbai Mirror, 03 Jul 2010

Nepal, Kathmandu Valley: one-fourth of bottled water ‘contaminated’

Bottled-water, which until a few years ago, was regarded a luxury is now a common sight in Nepali households, thanks to heightening shortage of potable water. However, the fast growing bottled-water industry is highly unregulated as studies have showed that one-fourth of the bottled water distributed in the market is contaminated.

Pramod Koirala, senior food research officer at Department of Food Technology and Quality Control (DFTQC), said as much as 25 percent of bottled-water companies based in the Kathmandu Valley have been flouting the standards set by the department.

“We tested samples of bottled-waster distributed by 37 companies in the last four months and found that the products of 10 companies were contaminated,” Koirala said, adding, “This shows that the companies are flouting the standard set by the government.”

DFTQC has filed cases against the 10 companies at concerned district administration offices, Koirala said.

The mushrooming of bottled-water companies in every nook and corner of the Valley has not only made it difficult for consumers to differentiate between clean and contaminated bottled-water but also has created fertile ground for unhealthy competition.

Koirala said small-scale companies with little investment and no technical expertise are making things worse, as they are the ones that bottle contaminated water.

The study report prepared by DFTQC states that most of the companies bottle water brought from nearby water sources with negligible or no chemical treatment.

The Valley consumes a total of 900,000 liters of bottled-water in a day, according to Nepal Bottled-water Industries Association (NBWIA).

Though the question on cleanliness and hygiene of bottled-water is doing rounds, bottled-water companies are cashing on the water shortage and selling thousands of liters of bottled-water everyday. The price of water jars (with 20 liters capacity) varies from as low as Rs 35 [US$ 0.46] to as high as Rs 80 [US$ 1.06] per jar.

“It is the unmanaged growth and growing competition among bottled-water companies that has been inviting unhealthy competition in this industry,” Rabin Shrestha, general manager of Aqua 100 – one of the leading bottled-water brands – told myrepublica.com. “Unless and until a perfect inspecting mechanism is put in place, the companies will continue to cheat consumers.”

Shrestha said consumers should be aware of the fact that bottled-water does not necessarily mean that the water is pure and hygienic.

About 300 bottled-water companies are registered with various government agencies, including Nepal Food Corporation and Department of Commerce. The industry directly employs more than 6,000 persons, according to Nepal Bottled-water Industries Association.

“Apart from these registered companies, numerous other companies are operating illegally,” Nabin Kumar Karki of Nepal Bottled-water Industries Association said.

Source: Republica, 10 Jul 2010

Viet Nam: even bottled water unsafe

In early 2009 tests by health officials showed widespread contamination of municipal tap and bottled water: High levels of nitrates and arsenic, which can cause cancer, were found, as was e-coli, which causes diarrhoea. Tran Van Nhi, a scientist at the Vietnam Institute of Biotechnology, told IRIN Hanoi’s water was heavily contaminated with ammonia: “It is 6-18 times higher than the allowed level.” Nhi also found arsenic levels two to three times higher than acceptable World Health Organization standards. Most residents boil drinking water as a matter of course, even though high temperatures do not remove arsenic or dangerous heavy metals.

Bottled water

In recent years, as incomes have risen, more people have been buying bottled water. Twenty-litre jugs that sell for around 50 US cents are affordable for most Vietnamese. However, tests on hundreds of brands across the country reveal that bottled water cannot be trusted either. Dozens of samples failed safety standard tests in Ho Chi Minh City in March 2009. “We detected bacterium in our samples, mainly coliform and Pseudomonas aeruginosa,” said Le Truong Giang, deputy director of the city’s health department. Pseudomonas aeruginosa can lead to sepsis and death.

[A]ntiquated water pipes leading from treatment plants to individual households leak, enabling dangerous contaminants to leach in. The long-term solution is to upgrade municipal water supply systems but this requires massive investment. “Water treatment plants can’t meet water demand in the big urban areas,” said Ton. “From now to 2020, Hanoi [which currently produces 600,000 cubic metres of water a day] will have to produce more than one million cubic metres,” to meet demand, said Nguyen Ton, chairman of Vietnam’s Water Supply and Sewage Association in Hanoi. The need to nearly double current capacity will require investment in infrastructure that Hanoi cannot afford, according to Ton.

Source: IRIN, 17 Apr 2009

India, Hyderabad: Water board to sell canned water

The Hyderabad Metropolitan Water Supply and Sewerage Board has started commercial sale of canned water [under the brand name “Metro Water”]. The Board will initially confine the sale to government offices and institutions.

The volume of each can is 20 litres and the water in it can be used for a month and a half. One can of Metro Water is retailed at Rs 40 [US$ 0.81]; private concerns sell it for Rs 50 [US$ 1]. “We are tapping only 10,000 litres of drinking water per day for Metro Water,” said Mr Kumar. “The canned water project will not in anyway affect the regular daily supply via pipelines to citizens. This is only an additional way to raise the Board’s revenues.”

[...]

The Water Board got its first order from Hyderabad District Election authorities for supply of 1,000 cans to the election material distribution centres. Though the Board had planned to foray into commercial market with sachets and one litre bottles in association with Vijaya Dairy, the project was delayed due to various reasons.

Source: Deccan Chronicle, 15 Apr 2009

Maldives: water shortage hits 12 islands, one family spending 85% of income on bottled water

The shortage of potable water on some islands in the Maldives has been described as “serious” by the national disaster management centre (NDMC). There are currently 12 islands which have been facing water shortages since mid-February, according to Moosa Ali Kaleyfaan, deputy director general of the NDMC.

The NDMC has supplied 763 tons of water to eight islands, but four more islands [...] are in desperate need of water, he said. “The main reason is it hasn’t rained for a long time it’s the dry season,” said Moosa. “Even more islands are believed to face this problem.” The department of meteorology has forecast the dry season will continue until June [2009].

The NDMC has spent an estimated US$60,000 to supply water to the 12 islands.

“I am very upset with the government because we need water,” said 42-year old Jameela Aboobakuru from Gaafaru. “We ran out of water, so we borrowed water from our brother. When he ran out of water we started buying bottled water imported from Male’.” She said her 12-member family was spending US$22 a day to buy bottled water for drinking and cooking; their daily income, she added, was only US$26.

On another island, Gulhi, Ahmed Ibrahim, the island office assistant director, said islanders had been importing bottles water from the capital as well as in jerry cans. “They are getting water somehow,” he said, “but the island needs a permanent solution to this problem like piped desalinated water.”

Kaleyfaan agreed, saying although water was supplied to the islands from Male’, it was necessary to seek a long-term solution such the installation of a desalination plant on every island. “We are already in the process of installing a desalination plant in a boat, so that in emergencies we can supply water by travelling between islands,” he said.

[...] Almost 100 per cent of islanders use rainwater as the main source of drinking and cooking water. In [the capital] Male, 100 per cent of the population has access to piped desalinated water. After the 2004 tsunami, 38 islands were provided desalination plants by UN that are operated daily or on emergency basis.

Source: Ibrahim Mohamed, Minivan News, 10 Mar 2009

Nepal: Bottled Water in Nepal Thirsting for Quality

The bottled water industry in the country is doing well because of the shortage of clean drinking water, particularly in Kathmandu, claims Prativa Dhungana, CEO, Himalayan Spring Water Inc. But what is worrying, she adds, is the very quality of water that is being sold as potable. With numerous companies mushrooming, it has become difficult for a consumer to know exactly which one is really good and which carries health hazards.

[...]

It is not the number of companies that we are concerned about but the quality of water that they sell,” says Dhungana. And the government too has not been of much help in this regard. “This is the very reason why we opted to establish the Nepal Bottle Water Industries Association (NBWIA) some months back,” reveals Ramesh K Shrestha, president of the association, and proprietor of Aqua Pet Bottles and Safa brand of water.

[...]

The Food Investigation Department (FID) has not played any major role in vying to curb this trend of marketing low quality water. “It is also very easy to open a factory because the only thing one requires is registration at the Department of Cottage and Small Industries and a license from FID,” says Surendra Shakya, MD, Prakriti Pure Drinking Water, manufacturer of Aqua Plus brand. Beyond that there is no check mechanism. “A company can obtain a license from FID claiming that they will adhere to certain norms but once the license has been issued, the person can go and open any type of factory s/he wants,” adds Shrestha.

[The NBWIA plans to work] “in coordination with the Department of Cottage and Small Industries, FID and the CDO office to check on all fraudulent activities and try to bring all companies under one legal forum that works against fraudulent and substandard companies,” concludes Shakya”.

Source: The Boss / NGO Forum, 15 Oct-14 Nov 2008