An Indian state health authority is investigating how liquid discharged from Apple supplier Tata's iPhone components factory has affected farmers, some of whom complained about skin issues from contamination in their farmlands, according to three officials and a document reviewed by Reuters.

The probe opens a new front in an environmental dispute that has become a test case for India's push to become a major manufacturing hub for Apple iPhones.

The Tata Electronics plant in Hosur, in southern Tamil Nadu state, was sent a warning notice by the state pollution control board on May 25 for allegedly contaminating groundwater in adjacent farms.

Tata said in a statement this week that the pollution board had dropped its scrutiny after confirming its analysis of recently collected water samples from inside the facility didn't indicate any contamination.

The pollution board and the state haven't commented, and didn't respond to Reuters emails and phone calls. Apple also didn't comment. Tata didn't respond to repeated requests for comment.

According to government sources and a letter, health officials in the district have been running their own investigation since at least late May after farmer complaints about the plant, which opened in 2021 and makes iPhone back covers and some other parts.

A health inspection found discharge from the Tata plant had caused a severe foul smell and left water unsuitable for animals to drink, according to a May 27 letter sent by Anish Parvin, a government medical officer in Ullugurukkai village, where the plant is located, to the state-run Institute of Vector Control and Zoonoses in Hosur.

"Wastewater released from Tata Electronics … has accumulated in nearby agricultural lands and is contaminating the clean water present in wells nearby," read the letter, which isn't public but was reviewed by Reuters. "It has also been reported that people are experiencing skin-related health issues due to this contamination."

Parvin told Reuters she received complaints from farmers about health issues, although no cases had yet been clinically established.

Two water samples from the farms have been submitted by health officials to a state government laboratory for testing, a government source said. Both samples tested positive for E. coli, bacterium found in sewage that indicates faecal contamination of the water supply, according to a report from the district public health laboratory dated May 30, obtained by Reuters.

The probe by state health officials remains ongoing with a second set of results from tests still awaited, said Rajesh Kumar C, a senior government official who oversees public health in the region.

The dispute has pitted a farming community against the Tata Group, an industrial giant that is one of Apple's most important Indian suppliers and central to Apple's drive to diversify production beyond China.

India is on track to make 26% of the world's iPhones in 2026, up from 6% four years ago, according to research firm Counterpoint. Tamil Nadu is a major manufacturing hub, with another Tata iPhone assembly plant there, and Samsung and Hyundai Motor also operating large factories.

The scrutiny on the Tata plant followed complaints from farmers, which led the Tamil Nadu Pollution Control Board to seek an explanation from the company and warn that its plant could be shut.

Newly revealed documents show farmers first raised their concerns in a December 8 letter to Tata. The letter, from a local social justice group and 15 farmers, alleged wastewater from the plant had fouled their streams, ponds and groundwater, leaving them unable to cultivate. Reuters couldn't establish if Tata responded.

A person familiar with the matter said a pump failure occurred at the Tata plant's water treatment unit in December, leading to some treated sewage flowing into its rainwater harvesting pond, and then overflowing into a lake outside. Tata acted immediately to stop the overflow and the pump was repaired, the person added.

Apple's supplier code of conduct requires suppliers to "identify, control, and reduce wastewater" and "conduct routine monitoring" of treatment systems. It also requires suppliers to "prevent contamination of stormwater runoff" and comply with all environmental permits.

The pollution regulator also collected samples in April from two open wells near the plant. Results, reviewed by Reuters, showed total dissolved solids (TDS) — a measure of minerals, salts, metals in water — at 1,084 and 1,286 milligrams per liter. That's more than double the 500 mg/l that the Bureau of Indian Standards considers acceptable for drinking water.

  • Tata Electronics plant in Hosur, Tamil Nadu, opened in 2021, makes iPhone back covers and parts.
  • Health officials found E. coli in two farm water samples, indicating faecal contamination.
  • Water samples from wells near plant had TDS levels over double the acceptable limit (1,084 and 1,286 mg/l vs 500 mg/l standard).
  • India is on track to produce 26% of global iPhones in 2026, up from 6% in 2022.
  • Farmers first complained in a December 8 letter to Tata, alleging wastewater fouled streams and groundwater.