The Kumasi Metropolitan Assembly (KMA) has clashed with producers of sachet water in the Ashanti region over pricing of the commodity.
A special task force of the Association of Sachet Water Producers has embarked on an exercise to discourage price undercutting by its members.
Officials say disciplinary action is taken against members who flout directives not to sell below the approved price of 10 pesewas per sachet and a retail price of Gh¢1.50 per bag of 30 sachets.
But the KMA wants the Association to stop pressurising other producers to sell the product at 10 pesewas.
In a statement signed by Public Relations Officer, Godwin Okumah Nyame, the Assembly stated it is unlawful for any group to take the law into its own hands.
He told Luv Fm in an interview that “they [Association] do not have the right to determine the cost or price for the retailers so they should allow them to sell at their own price because the assembly is there to create the enabling environment for business to grow… they have no right to compel them to sell at the price that they want since we’re in a liberal economy”.
Secretary to the producer association, Kofi Antwi-Adjei however says the activities of the task force are to protect the retailers against “unscrupulous people” who attempt to argue or even attack distributors.
“We are not going out there to destroy as has been reported or to seize [the goods] of retailers who are selling at 5 pesewas. But what we’re telling them is that if you want to retail at 5 pesewas then you can buy any other water but not a product from the association, that is a product which has the endorsement of our association”, he stated.
Mr. Antwi-Adjei is worried the measures by the Association to provide consumers with “good standardized water” and instill healthy competition in the industry are being thwarted by the interference of the KMA.
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