Pesticide Issue of Coke and Pepsi

Advent of Pepsi and Return of Coke in India:- Coca-Cola was India's leading soft drink until 1977 when it left India after a new Janta party led government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation(PAIC) and Voltas . This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalisation policy. The Pesticide Issue of Pepsi and Coke in India:- In 2003, the Centre for Science and Environment (CSE), a non-governmental organisation in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants Pepsico and Coca-Cola, contained toxins including Lindane, DDT, Malathion and Chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft drinks ( 7 UP, Mirinda, Fanta, Thums Up, Limca and Sprite), many produced by The Coca-Cola Company. CSE found that the Indian produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. Coca-Cola and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. In 2004, an Indian parliamentary committee backed up CSE's findings, and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. Coke and PepsiCo oppose the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks like soda. The Coca-Cola Company responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and agreed that it must meet minimum health standards before they are distributed. Coca-Cola had registered an 11 percent drop in sales after the pesticide allegations were made in 2003.Coke and Pepsi together hold 95% market share of soft-drink sales in India. In 2006, Kerala banned the sale and production of Coca-Cola, along with other soft drinks, due to concerns of high levels of pesticide residue. In 2006, the High Court in Kerala overturned the Kerala ban ruling that only the central government can ban food products.