In a major relief for Pepsi and Coca Cola, Madurai bench of Madras High Court on Thursday lifted the stay banning the two companies from using the water from Thamirabarani river. The cola giants had been banned from using water from the river flowing through Tirunelveli district four months ago, following protests by the people in the region.
In November 2016, the Madurai Bench of Madras High Court had banned Pepsi and Coca Cola from using the Thamirabarani river water for their bottling plant. This was based on a PIL filed by D.A.Prabakar, secretary of Tirunelveli consumer association, claiming that the companies were using the river water for commercial purposes while the farmers were deprived of their livelihood.
The petition further argued that the water was meant for irrigation and drinking purposes in the Tirunelveli district. It also said that the companies paid only 37.50 paise per 1000 litres of water they extracted for using in their bottling plants, but sold the beverages at a higher cost.
Stating that the Tamil Nadu government had given permission to the companies to draw nine lakh litres of water per day in 2005, the petitioner argued that the volume was later doubled which led to concerns among the farmers and drinking water issues.
The petition was filed by Prabakar following continuous protests by people in the Tirunelveli region over the use of the river water by the cola majors. The protests in 2015 even led to clashes and several people were injured. However, arguing on lifting the ban, the two companies said that they were being unfairly targeted and that their plants were part of a government industrial estate. It also said that the water was being supplied to all other industries in the region.
Four months later, the ban being lifted has come in as a breather for the cola majors at a time when the retail traders have rallied against them, banning sale of the beverages. The retail traders in the state, from March 1, had banned the sale of the bottled soft drinks in the state. According to A.Vikirama Raja, president of Traders Union in Tamil Nadu, "15 lakh traders have decided to boycott the sale of Coke and Pepsi."
The ban on sale was announced a month before by the traders' union citing health issues as the two beverages were "toxic in nature". Says Raja, "People are aware of the adverse health effects of these drinks."
The issue of banning the two soft beverages came in during the pro-Jallikattu protests in Tamil Nadu. Now, out of the 20 lakh retail shops in Tamil Nadu, at least 15 lakh have already taken off the beverages from their shelves, while a few lakh continue to sell.
On the other reacting to the boycott of the products of Coca Cola and PepsiCo India, the Indian Beverage Association said it was "deeply disappointed". Stating a 2013 Supreme Court order, the association said that the FSSAI panel report clearly said that the ingredients present in the aerated beverages do not pose any health hazard. "This is against the proven fundamentals of robust economic growth, and against the clarion call of Make in India," it said. It further said the boycott call only "violates the rights of the consumer to exercise choice." IBA is an organisation of non-alcoholic beverage industry.