In a big relief for the Cola companies, the Madras High Court has lifted the stay on the ban of water supply to Pepsi and Coca-Cola in Tamil Nadu. The stay was imposed in Tirunelveli District on the grounds that the manufacturers were using river water for making Cola which as affecting the local water bodies and the farmers. After the stay, there was a ban on the water supply to the plants of both the companies, however, Madras HC’s Madurai branch dismissed two PILs against the supply of Thamirabarani water to co-packers of Pepsi and Coca-Cola bringing a good news for them.
Even though the ban was imposed recently, Tamil Nadu’s local traders have been fighting against these brands for almost 30 years now. Their major concern is regarding the health of the locals and the traders have been protesting against the two beverage giants for a long time. They have also been backing the local beverage brands due to the health issues caused by the cold drinks.
However, The Indian Beverage Association (IBA) is deeply disappointed by the call to boycott products manufactured by Coca-Cola and PepsiCo India. It released an official statement against the entire episode reading, “This call is against the proven fundamentals of robust economic growth, and against the clarion call of “Make in India”. The boycott call also violates the rights of the consumer to exercise choice. The Indian Beverage Association has already clarified that both Hindustan Coca-Cola and PepsiCo India are local companies, registered in India and compliant to all applicable rules and regulations. They respect local culture and consumer sentiments. Coca-Cola and PepsiCo India play a critical role in improving the livelihood of over 2 lakh retailers, who earn more than Rs. 400 crores in income by selling products manufactured by the two companies. The companies also sustain the interests of thousands of Tamil Nadu farmers, by procuring agri-produce. Furthermore, Coca-Cola and PepsiCo India together provide direct employment to 2,000 families in Tamil Nadu and more than 15,000 families indirectly, through their extensive supply chain.”
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The two biggest tarde associations in Tamil Nadu joined hands to boycott the sales of Pepsi and Coca-Cola in the state in favour of the Indian products. These associations believe that both the companies take away too much of water leading to irrigation problem for the farmers. They also appealed to the supermarkets, restaurants, and hotels for joining the boycott to help local businesses and farmers prosper.
Two years ago, the farmers organised a massive protest against a bottling plant by Coca-Cola in Erode district. The farmers believed that the plant would pollute ground water. After the continuous protests, the idea of the plant had to be shelved.