India, Kerala: Coke wins latest round but water battle goes on

Updated - Tuesday 28 June 2005

The Kerala High Court has ordered Perumatty village council (panchayat) to grant a licence for Coca Cola to extract up to 500,000 litres of water a day at its Plachimada bottling plant. The Court overturned an earlier ruling that underground water belongs to the public and the Government must protect it.

The Plachimada Solidarity Committee says the campaign to close the plant will continue and urged the panchayat to appeal to the Supreme Court. Activist C.R. Bijoy, said: “The issue is about who has the fundamental decision making power over the use of natural resources, and it is about the survival of the people."  

Coca-Cola, which produces Coke, Fanta, Sprite, Thums Up and Limca, started bottling in March 2000. At its peak the plant produced a million bottles daily. Villagers allege that water levels dropped sharply and the remaining water caused dizziness, diarrhoea and skin rashes. They allege that Coca-Cola persuaded local farmers to use waste sludge containing cadmium and lead as a fertilizer.

This is one of many protests against Coca-Cola India: Coke is even banned in Parliament. However, the company says that allegations are without scientific basis and that in some areas water levels actually rose after it introduced rainwater harvesting. It cites a number of community and environmental awards as evidence of good practice.

The Court found that the Panchayat had acted arbitrarily. It based its judgement on a scientific report that blamed low rainfall for the shortages and concluded: “The Coca-Cola factory can be safely permitted to withdraw 5 lakh litres per day without adversely affecting both domestic and irrigation water requirements.” The report said that Coca-Cola should be strictly controlled when rainfall was lower than normal.

Related news: India: Coca Cola plant shutdown could trigger groundwater reform, Source, 08 April 2004; Coca-Cola in bottled water controversy, Source, 9 Mar 2004.

Contacts: R. Ajayan , Plachimada Solidarity Committee (India) Tel: +91 9847142513; Amit Srivastava , India Resource Center (US), e-mail; Vikas Kochhar , Coca-Cola Public Affairs and Communications, e-mail.

Sources:  India Resource Centre 08 April 2005;  Zee News, 12 April 2005;  The Hindu, 12 April 2005;  The Times of India, 06 April 2005;  Alexander Cockburn, The Free Press, 13 April 2005;  Coca-Cola India, 31 March 2005.

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