|

| |
Coca-Cola
in India
Vinay Lal
[published
on AsiaMedia, 1 September 2006]
Morarji Cola vs. Coca-Cola
Coca-Cola India's web site makes
no mention of the drink's chequered Indian past. In 1977, Indira Gandhi,
who was the Prime Minister for over a decade, was thrown out of power
after voters punished her and the Congress party for the excesses committed
during the internal emergency of 1975-77. The Minister of Industries,
George Fernandes, was part of the new Janata government, which styled
itself as a party devoted to swadeshi, or self-reliance. Fernandes invoked
a particular provision of the Foreign Exchanges Regulation Act (FERA)
which required foreign companies to dilute their equity stake in their
Indian associates to 40 percent if they wished to remain in the country.
Coca-Cola would not oblige and was given marching orders to (as Mohandas
Gandhi might have said) "Quit India." In popular folklore, the
government of Morarji Desai, a teetotaler given to a spartan lifestyle,
is believed to have told Coca-Cola that, in lieu of observing Indian regulations,
Coke could reveal its formula and thus continue to stay in India. In this
respect, at least, Desai appears to have anticipated the present Supreme
Court of India, which has invited Coca-Cola to reveal its formula and
so assure itself an untroubled stay in India.
The great unmentionable in this thick plot is that Desai, a staunch believer
in nature cure, was habituated to consuming a glass of his own urine every
day. He maintained that regimen for at least two decades, at a time, moreover,
when auto-urine therapy was virtually unknown except to a few naturopaths
who would not have dared to pronounce in public the virtues of urine.
Since India was keen to flaunt its modern credentials to the outside world,
it was something of an embarrassment that the country's leader was addicted
to -- well, another drink, something that is decidedly not modern, nor
very useful in spreading consumerism or helping the rise of free markets.
(Urine is free, but this is not what the proponents of the "free
market" had in mind.) With Desai at the helm, one can understand
why Coca-Cola had no future in India.
Desai lived to the ripe old age of 99, something not even remotely within
the realm of possibility for someone brought up on a diet of Coke or diet
Coke or Zero Coke.
Coca-Cola resurfaced in India twenty years after its unceremonious exit.
Elites and Subalterns: Coca-Cola's Proper Destiny
There are ample reports that the bans on Coca-Cola have led to demands
for the forbidden elixir on the black market, and it is unlikely that
they will be sustained for very long.
The modern world's addiction to sugared drinks is of more serious proportions
than the more frequently discussed addictions to coke (of the other variety),
tobacco, and alcohol. One of the more charming stories told about Mohandas
Gandhi, whose assassin blamed the Mahatma for foisting upon the world
his blind addiction to nonviolence, concerns an old lady who arrived at
his ashram with a six-year old boy in tow. Her grandson, the lady explained
to the Mahatma, was excessively fond of sweets, and she wanted the lofty
man to talk the young boy out of his addiction to sugar. Gandhi asked
her to return with the boy after a month. When she did, the Mahatma spoke
to him at some length on the unhealthy consequences of excessive consumption
of sugar and urged him to keep off sweets. The old lady then said, 'You
could have told my grandson the same thing a month ago. Why did you have
us return to the ashram?' Gandhi replied, 'I myself was eating too much
sugar a month ago. I had to give it up in the following weeks before I
could ask your grandson to do so.'
One suspects that Mohandas Gandhi, were he alive today, would have been
at least as receptive to the bans on Coca-Cola and Pepsi as he was to
prohibition. But if modern India's disdain for Gandhi is any guide, one
can be certain that producers, vendors, and consumers of these beverages
will conspire to keep them in circulation.
Nevertheless, the captains of industry are alarmed that the bans on Coke
and other colas, just when India has finally become attractive to foreign
investors, might have a chilling effect on direct foreign investment.
The Confederation of Indian Industry's America-based representative, according
to a report in The New York Times (Aug. 15, 2006), has expressed hope
that "U.S. companies do not use this [the bans] as a measure to decide
whether to invest in India." Similarly the President of the Indo-American
Chamber of Commerce, Prabharkar Bothireddy, has some misgivings that the
bans "could send the wrong message to investors at a time when there
are vast opportunities for businesses in both countries to work together."
Meanwhile, according to the BBC, the U.S. Under-Secretary for International
Trade, Franklin Lavin, was more forthright in declaring that the bans
constituted a "setback for the Indian economy." Lavin characterized
proponents of the bans as people who do "not want to treat foreign
companies fairly" and criticized their attempts to dominate the discussion.
The irony of a representative of the U.S. government intervening in the
internal matters of Indian states is evidently lost on him.
While industry executives, corporate leaders, and other elites in the
US and India have over the last few years continued to weigh in with their
opinions about Coca-Cola serving as a barometer of India's growing economy
and the country's norms of hospitality toward foreign companies, the subalterns
in India have in their own way stumbled upon the inestimable benefits
of Coca-Cola. On Nov. 2, 2004, a year after CSE first found inordinately
large levels of pesticide in Coke and Pepsi samples, John Vidal of the
Guardian reported that farmers in the states of Andhra Pradesh and Chattisgarh
had found that Coca-Cola worked as an extraordinarily effective pesticide.
At Rs 30 a liter (about 75 cents), an acre of chilli and cotton fields
could be sprayed for about Rs 270 (less than $6), a fraction of the Rs
10,000 (some $220) that it would cost to spray over the same area a pesticide
produced by Monsanto, Dow Chemical or other large chemical manufacturers.
Gotu Laxmaiah, a farmer from Andhra, described to an Indian journalist
that "pests began to die after the soft drink was sprayed on [my]
cotton." The astute Laxmaiah also noted that Coke could be handled
without gloves. According to Vidal, hundreds of other farmers gave similar
reports.
Coca-Cola, one might reasonably conclude, always does the right thing.
The revenge of the subalterns may turn out to be the revenge of Coca-Cola,
judging from the various lives of Coca-Cola In India, if nowhere else,
Coca-Cola should be thinking of its karma.
|