*From Tehelka Magazine, Vol 5, Issue 4, Dated Feb 2, 2008*   *ENGAGED
CIRCLE *   *cola controversy *

*Good Water, Bad Cola?*

*A TERI reports says water used to make Coke is free of pesticides. **CR
BIJOY **puts the report under the scanner*


*
*WHEN TERI (The Energy and Resource Institute) gave a "clean chit" to Coca
Cola in India last week, the media reported it dutifully. TERI's study found
no pesticide in the water used for making soft drinks. The Centre for
Science and Environment (CSE) retorted that "TERI has not tested the final
product, which we drink. The CSE study in 2003 and 2006 tested bottles of
colas and found pesticides above safe limits in the drinks." As if on cue
Tim Slottow, the executive vice-president and CFO of University of Michigan,
informed Jeff Seabright, Coca Cola's vice-president (Environment & Water
Resources) expressing satisfaction and that "the University of Michigan will
continue to do business with Coca Cola at this time".

The doubting fizz drinkers are now expected to repose faith in the globally
battered Coca Cola and their products. Does it matter if water used in
making soft drinks does not contain pesticide? If this were true, how did
Coca Cola's products test positive for pesticide in the CSE studies and when
tested by the NK Ganguly Committee of the Union health ministry of the
Government of India? TERI not testing the soft drinks for pesticide now
becomes a handy tool to skip correlating the qualities of water processed
from raw water with the fizz themselves. TERI's defence could be, "That was
anyway not part of the terms of reference for the study." But what has the
University of Michigan to do with Coca Cola in India? Are 'made in India'
Coca Cola's products now to be supplied in that university's campus? What's
the basis of the TERI report?

Either the quality of water processed from raw water has improved in the
last few years due to the exposes; or the production process increases
pesticide content in the soft drinks where 3.8 litres of water goes to make
a litre of soft drink. The TERI study is also not in response to the
problems that Coke faces in a number of its 49 plants in India —
particularly Plachimada (Kerala), Mehdiganj (Uttar Pradesh), or Kala Dera
(Rajasthan) where local communities have been protesting. The Coke plant in
Plachimada has remained shut since 2004. The TERI study is not in response
to CSE's finding of pesticide in Coke products; nor is it about groundwater
or community concerns around the affected land and peoples.

The TERI study seems to be an effort to restore market confidence in Coca
Cola; particularly in the US. Students in the US, the UK and Canada have
been applying pressure on Coca Cola to end its abuses particularly in India
and Colombia. Over 20 colleges and universities in the US have taken action
against Coca Cola. Active campaigns to ban Coca Cola from campuses exist in
at least 30 colleges and universities. Rutgers University in New Jersey
decided not to renew Coca Cola's exclusive beverage contract in 2005. New
York University, the largest private university in the US, instituted a
similar ban, joining Rutgers University; Bard College in New York; Carleton
College in Minnesota; Lake Forest College and the College of DuPage, both in
Illinois; Oberlin College in Ohio; and Salem State College in Massachusetts.
Other prominent US universities that The study is a result of campaigns to
ban Coke from 30 American college and university campuses have banned Coca
Cola are University of Illinois and the Santa Clara University in
California.

THE CAMPAIGN by the Student Coalition to Cut the Coca Cola Contract forced
the University of Michigan to temporarily suspend purchasing of Coca Cola
products beginning January 1, 2006 making it the tenth US University to put
on hold the sale of Coca Cola's products in its campus. Both the University
of Michigan and NYU were Coca Cola's largest campus markets in the US.
Coke's annual contracts with the University of Michigan alone were worth
around $ 1.3 million in sales (2004). The ban spread beyond the US when the
University of Guelph of Canada and the University of Manchester in England
voted to boot out Coca Cola products. The genesis of the students' actions
was the conspicuously bad human rights and environmental practices of Coca
Cola, particularly the improper bio-waste disposal, polluting groundwater,
depleting water resources and allowing pesticides into products in India,
and the questionable labour practices in Colombia. But Coca Cola
persistently rubbished these allegations.

In 2001, the International Labor Rights Fund, a non-profit human rights
organisation, and Sinaltrainal (National Union of Food Workers), a Colombian
labour union and the United Steelworkers of America, filed a lawsuit in a
Florida court against Coca Cola and two of its bottlers, as they were
believed to be linked to the murder of eight union leaders of Coca Cola's
plants in Colombia since 1989 as part of union-busting efforts in
collaboration with the paramilitaries. The International Union of Food,
Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers'
Associations (IUF), a Geneva-headquartered international federation of 336
trade unions in 120 countries with over 12 million workers, secured an
agreement with Coca Cola to request the United Nations through its
International Labour Organisation (ILO), to conduct such an investigation on
February 28, 2006. This investigation was initiated in April 2006.

In the case of human rights and environmental violations in India, the
independent investigation was precipitated by the action of Dispute Review
Board of the University of Michigan to suspend purchase of Coca Cola
products citing concerns that the company may have violated the University's
Vendor Code of Conduct. Coca Cola failed to comply with the December 31,
2005 deadline to meet the demand for independent investigations by selecting
an auditor and agreeing upon a detailed protocol for the audits. The upshot
of all these is the 'The Independent Assessment of Coca Cola Plants in
India' by New Delhi-based The Energy and Resources Institute that resulted
from the agreement signed between Jeff Seabright (vice-president,
Environment and Water Resources, The Coca Cola Company, USA) and Leena
Srivastava, (executive director, TERI) and Michael T. Lesnick (senior
partner, Meridian Institute, Dillon, Colorado, USA) on 30 August 2006 with
the project initiation in September and final report set for March, 2007.

THE TERI report indicts Coca Cola on a number of counts despite the study
itself, by agreement, being limited to "assessment of Coca Cola (India)'s
current water resources management practices" that includes also
ascertaining "the impact of pesticides on the quality of the intake water".
The report says that the company's "assessment of water availability in the
vicinity of a bottling operation is determined by business continuity" alone
not taking in such essential factors as environment, water
availability/quality or community concerns. It does not even attempt to
examine whether there exists any relationship, if at all, between the
pollution of groundwater (that it records) with that of the activities of
Coca Cola. While recording the local community's perceptions that there has
been a drastic and rapid deterioration in the quality of groundwater since
the commencement of the operations of the plant in most instances, TERI
actually declared its intention not to do so. While harping on the
relatively lower share in water usage by Coca Cola in the total water usage
in the locality, what is possibly hidden is that Coca Cola is biggest water
drainer in the area.

TERI also does not check for the adverse impact on groundwater quality by
the rapid extraction of water by Coca Cola plants. It also remarkably
equates water usage by Coca Cola, a producer of non-essential luxury
commodities, with that of the water usage by essential agriculture and other
industries. Coca Cola refused to show TERI some of its own vital documents
and its own Environmental Impact Assessment reports "due to reasons of legal
and strategic confidentiality". That such documents would not be made
available to TERI was anyway part of the agreement signed between them. Then
why did TERI agree to do the study at all? Read with Coca Cola India Limited
being one of TERI's sponsors to the extent of 0.3% (2001-02), 0.08 %
(2002-03), and 0.05% (2004-05) of the total annual revenues of TERI, makes
the TERI report suspect.

Of the six plants selected for analysis, two sites were selected for
community protests namely Kaladera and Mehdiganj. The more well-known
Plachimada plant was left out as the plant is "not in peration". TERI
analysed the intake of raw water, process water and wastewater from Effluent
Treatment Plant (ETP) and Sewage Treatment Plant (STP). It found no
pesticides in the intake and process water used to make beverages and in
treated effluent water as well. But the intake raw water of the four out of
six plants when compared with the Indian Standard for drinking water (IS
10500: 1991, BIS) "showed exceedance of total alkalinity. These were HCCBPL
Kaladera, Mehndiganj, Nabipur, and Pirangut. Other parameters exceeding
standards included barium at HCCBPL Nemam, Nabipur, and Sathupalle; nitrate,
iron, and pH at Sathupalle; lead, aluminium, and turbidity in HCCBPL
Pirangut; and fluoride and TDS (total dissolved solids) at HCCBPL Kaladera."
TERI made no attempt to correlate the regional groundwater quality to the
operations of the Coca Cola plant, but merely recommended that "there is a
need to carry out a further detailed study to establish/rule out the reasons
for such presence." TERI also recorded the perceptions of stakeholders
including the local community in all the six cites and found them to be "in
conformity to the results obtained from the detailed technical assessment of
groundwater resources". Does then this not indicate that the local
communities have been after all largely correct in their perceptions of
problems if not the causes?

This goes against the usual refrain of Coca Cola that all these are
"motivated" allegations. TERI acknowledges that "the stakeholders recorded
concerns related to unregulated water extraction by Coca Cola plants,
especially in case of Kaladera" and that the local community "perceives that
Coca Cola has deep bore wells that continuously withdraw water from
groundwater aquifers unlike borewells used for irrigation that are
relatively shallow and do not get regular supply of electricity." The study
also consistently found quality problems with 'raw water' in the villages.
While the TERI report concludes that the "plants generally meet the
government regulatory standards", it is silent on whether the government
regulatory standards are set for different parameters and are satisfactory.
The TERI report raises more questions than offer answers.

*WRITER'S EMAIL*
[EMAIL PROTECTED] <http://www.tehelka.com/[EMAIL PROTECTED]>

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