KERALA

War over water

62pepsicospalakkadplant Fizzy fight: PepsiCo’s Palakkad plant | T.P. Dhanesh

PepsiCo denies allegations of drawing excess water at its Palakkad plant

As the mercury soars, PepsiCo is feeling the heat in Kerala. The global beverages major has been accused of drawing excess water at its Palakkad plant, and has faced threats of boycott in the state as well as in Tamil Nadu.

While critics, including former Kerala chief minister V.S. Achuthanandan, have said the company has been overdrawing water for its plant, PepsiCo has denied any such misuse and has argued that it drew well within the limit of six lakh litres per day permitted by the Kerala High Court in 2011. The local authorities in Palakkad district, citing the severe drought in the region, had asked PepsiCo to reduce its withdrawal to one fourth of the entitlement starting February 3. The company did so, thus affecting its production and leading to loss of jobs. D. Shivakumar, PepsiCo’s India CEO, argued that the company had not only stood by the limits approved by the High Court, but had also taken up activities to make villages in the neighbourhood self-sufficient.

Recently, the local village panchayat had asked the company to stop withdrawing water altogether for six months. PepsiCo did not do so, insisting that the allegations of misuse were completely unfounded. “On the basis of available long-term secondary data and field checks, the extraction of water is not affecting any borewell, open well and other water discharges in any of the villages around the plant,” said a PepsiCo spokesperson. The plant, which commenced production in 2001, makes carbonated drinks and packaged drinking water.

Recently, the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES), a trade body representing retailers in Kerala, had announced that its members would not sell colas from mid-March, but that decision has been put on hold for now. The association had cited health reasons for the boycott, and instead wanted to promote indigenous drinks, including tender coconut water, as a healthier option.

“Kerala is an important market for us. Apart from the Palakkad plant, we have a large facility in Kochi, where we manufacture Quaker Oats. We were 12.75 billion litre water positive as of the end of 2015, and are committed to the state,” said Shivakumar.

Regarding criticism that its products have high amounts of sugar and salt, the company has now created a new tagline—“performance with purpose”—with the intention of reducing its use of sugar and salt, and will be focusing more on products with nutritional value. The company has conveyed this to retailers in Kerala and Tamil Nadu.

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Topics : #Kerala | #controversy

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