Coca-Cola Halts India Plant Production (over water rights)

[Khephra]

COCHIN, India -- American soft drink giant Coca-Cola on Monday suspended production at a south Indian plant following a government order to stop using groundwater until monsoon rains start in June, a company official said.

Coca-Cola has issued notices to its employees and the state government saying that it would be "left with no option but to close down its factory at Plachimada," the official said on condition of anonymity.

Last month, the Kerala state government told Coca-Cola that villages in the area were facing acute drought and the soft drink company should not use groundwater until June 15.

snip..

The Perumatty village council, which controls several villages, including Plachimada, says the Coca-Cola plant draws 400,000 gallons of water daily through dozens of wells, leaving local farmers with parched fields.

more.............

http://www.newsday.com/business/nationworld/wire/sns-ap-india-coke,0,2972630.story?coll=sns-ap-business-headlines

[phoebe]

1. good news - and as a bonus the Indians don't have to drink

liquid sugar, pesticide and fertilizer-laced drinks for a couple of months. On the down side, if Coca Cola stops production all together, it means some job losses - though who knows how many Indians are actually employed at this plant and at what wage? On the plus side, Indians get control of their water and their health back. Think I'd opt for a complete shut down of Coca Cola.