PepsiCo makes a retreat, says will drop cases against potato farmers
03 May 2019
US food and beverages giant PepsiCo Inc on Thursday announced its decision to withdraw all lawsuits against Indian potato farmers over patent violation by growing a potato variety on which the company claims patent rights.
PepsiCo invited public wrath by dragging a number of farmers in Gujarat to court for cultivating the FC5 potato variety, which, the company says, is grown exclusively for its popular Lay's potato chips. The snack food and drinks maker has now relented, saying it wanted to "amicably settle" the issue.
PepsiCo last week said it has agreed to withdraw cases filed against potato farmers following government assurances to find a solution for the dispute.
“After discussions with the government, the company has agreed to withdraw cases against farmers. We are relying on the said discussions to find a long term and an amicable resolution of all issues around seed protection,” a PepsiCo spokesperson said on Thursday.
This decision applies to the nine farmers PepsiCo has sued over the last two years for allegedly growing its registered potato variety which is used for Lays chips. PepsiCo had sued the farmers with small land holdings for Rs1.05 crore each.
“An unconditional withdrawal of litigation would be a great victory for the downtrodden and small farmers against a major corporate power”, Anand Yagnik, the lawyer representing four farmers from Sabarkantha district said, but added that the company has not communicated its decision to the court or to the farmers and their lawyer.
“It is not stated when it will implement its decision,” he said. “It is important that no wrong precedent is set, given that this is a test case which could affect other farmers across the country.”
The PepsiCo decision follows criticism from political parties and farmers rights groups, as well as boycott calls on global social media.
Deputy chief minister Nitin Patel said last month the state government had assured the farmers that it would help them. The opposition Congress party had also come out against PepsiCo.
PepsiCo, which set up its first potato chips plant in India in 1989, supplies the FC5 potato variety to a group of farmers who in turn sell their produce to the company at a fixed price.
"The company remains deeply committed to the thousands of farmers we work with across the country and towards ensuring adoption of best farming practices," said a PepsiCo spokesman.