Water bottle crunch ahead? Gujarat’s PET supply hit by Israel–Iran conflict As summer temperatures rise, the demand for plastic water bottles in Gujarat has surged, but the supply chain is facing a crisis. The Israel-Iran conflict has disrupted polymer production and driven up prices, creating a shortage of polyethene terephthalate (PET), the key material for water bottles. Gujarat, which produces 35% to 40% of India’s plastic, is now grappling with a 40% spike in PET polymer prices within just 12 days, straining manufacturers and retailers. Industry sources report that the cost of a 200ml empty PET bottle has climbed from Rs 1.10 at the end of February to Rs 1.45, squeezing margins for distributors and small-scale producers. The Gujarat State Plastic Manufacturers’ Association (GSPMA) notes that polymer prices have risen by Rs 18 per kg to Rs 32 per kg, creating financial stress for smaller manufacturers. Nayan Shah, director of Clear Water Bottle, explains that refineries are struggling to meet demand, with only organized players securing raw material supplies. Despite having an in-house production capacity of 75 lakh bottles per day, Shah says the shortage of PET has forced the company to cut output to 50 lakh bottles daily. The state’s packaged drinking water market, valued at Rs 2,000 crore to Rs 2,500 crore, is now under pressure as small manufacturers face reduced buying power. Kaumil Patel, a plastic manufacturer, highlights that the price hike has cut raw material procurement by nearly half, threatening overall supply. Anish Patel, GSPMA president, details the broader impact: PET prices rose from Rs 99,000 per tonne to Rs 1.39 lakh per tonne, while prices for HDPE, LLDPE, and polypropylene also surged.#gujarat #israel_iran_conflict #gspma #nayan_shah #kaumil_patel
