Multinational food majors McDonald's, PepsiCo and KFC got a taste of
realpolitik on Tuesday when Parliament started a debate on allowing FDI in multi-brand retail where the ruling front and opposition traded charges that left the US firms upset and dumbfounded.
McDonald's refuted BJP leader Sushma Swaraj's allegation that the fast-food giant does not source even basic commodities such as potatoes from within India while PepsiCo issued a clarification that it is the largest procurer of potato in the country.
KFC, which is on an expansion spree in India, did not comment, but it must have been shocked to hear communications and IT Minister Kapil Sibal say, "Many said KFC will drive the dhabas out of the market. Dhabas have driven out KFC." Earlier in the day, Swaraj, the opposition leader in Lok Sabha, alleged that McDonald's never bought potatoes from Indian farmers.
"Ask McDonald's about their fries. They never buy potatoes from local Indian farmers, saying the potatoes are too small here," she said. In a rare instance of a multinational refuting a politician, McDonald's India (North and East) in a press statement said: "We confidently and proudly state that ingredients used in our products are sourced locally that includes the French fries.
McDonald's refuted BJP leader Sushma Swaraj's allegation that the fast-food giant does not source even basic commodities such as potatoes from within India while PepsiCo issued a clarification that it is the largest procurer of potato in the country.
KFC, which is on an expansion spree in India, did not comment, but it must have been shocked to hear communications and IT Minister Kapil Sibal say, "Many said KFC will drive the dhabas out of the market. Dhabas have driven out KFC." Earlier in the day, Swaraj, the opposition leader in Lok Sabha, alleged that McDonald's never bought potatoes from Indian farmers.
"Ask McDonald's about their fries. They never buy potatoes from local Indian farmers, saying the potatoes are too small here," she said. In a rare instance of a multinational refuting a politician, McDonald's India (North and East) in a press statement said: "We confidently and proudly state that ingredients used in our products are sourced locally that includes the French fries.
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