'Banning Pepsi, Coke production extreme act'

Kochi, Aug 12: The Associated Chamber of Commerce and Industry (ASSOCHAM) has criticised as an "extreme act" the Kerala Government's decision to ban the production and sale of Coca-Cola and Pepsi in the state.

Kerala, yesterday, became the first state in the country to impose a total ban on the production and sale of Pepsi and Coca-Cola.

Talking to reporters here last evening, ASSOCHAM president Anil K Aggarwal said this would send a wrong signal to other foreign companies wanting to invest in the state.

"The government should have given the companies equal opportunity to clarify their position and amend the situation. The government cannot just close down the plants. It cannot take such a stand," he added.

On the decision by some other state governments also to ban the sale of colas in educational institutions, hospitals and government office canteens, Mr Aggarwal said India should set up its own quality standards instead of trying to imitiate US or other standards here.

"We have to set the standards as per our living conditions.

ASSOCHAM will take up the issue with the government of upgrading the quality standards sector-wise," he said.

The ISI and BIS standards were set up more than 30 years ago and were in need of upgradation, he added.

The Left Democratic Front (LDF) Government in Kerala took the decision to ban distribution and production of Pepsi and Coca-Cola under the Prevention of Food Adulteration (PFA) Act of 1954.

It said the decision was being taken in the larger interest of public health, in the wake of recent reports of a Delhi-based NGO that the soft drinks contained high levels of pesticide residues.

However, there was no immediate ban on the other products of the two multinational companies, which were facing a prolonged agitation in the state over the alleged overexploitation and contamination of drinking water.

Both the Coca-Cola and Pepsi plants were set up in Palakkad district of Kerala when the LDF was in power during 1996-2001.

UNI

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