PepsiCo offers out of court settlement with Indian potato farmers for Lays controversy

NEW DELHI - Global beverage giant PepsiCo has offered an out of court settlement with Indian potato growers, days after the latter were alleged of growing the variety used in Lays chips.

The multi-billion dollar firm had sued Gujarati farmers asking them to pay ₹1.05 crore each for infringment, stirring panic among the community which decided to fight back.

During a hearing on the matter at the Commercial Court on Friday, the counsel appearing for PepsiCo expressed its readiness for an out-of-court settlement but with some conditions.

"Firstly, they have to sign an agreement with us to buy the seeds and sell the produce to us. Or, the farmers give an undertaking that they will never use our registered seeds without permission in future. Whatever stock they have at present, should be given to us," the PepsiCo counsel told the court.

On the other hand, the respondents alleged the beverage brand of harassing the community, causing doubts whether the offer would be accepted or not.

"We have been harassed by the company. But we will not bow down to such pressures from a multi-national corporation (MNC). We are prepared for a tough fight," said one of the four farmers sued by PepsiCo.

PepsiCo had sued the farmers from Sabarkantha district in Gujarat for infringement of Intellectual Property Rights (IPR) of a potato variety named FL 2027 also called FC5; the variety is registered under the Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001.

Although the conglomerate has offered the settlement,  the farmers have sought time to file written responses and their objections; the next hearing will be held on June 12.

A Commercial Court had stayed the farmers from growing and selling the potatoes last week; the decision would remain in place for now.

PepsiCo had alleged that the farmers were growing a variety of potato on which it claimed exclusive rights by virtue of a Plant Variety Certificate (PVC) under the said act.

Soon after the tussle began between the firm and Gujrati farmers, about 200 farmers leaders, activists and civil society representatives wrote to Central Government and state government seeking their intervention in support of farmers.

The farmers seek the Protection of Plant Varieties and Farmers’ Rights Authority (PPV&FRA) to make a submission in court on their behalf and bear legal costs through the National Gene Fund.

T.K. Nagarathna, the PPV&FRA registrar said that the authority was looking into it.

“We can take action based on the court order,” she told The Hindu.

According to a letter sent to the PPV&FRA, these farmers facing legal trouble hold around 3-4 acres on an average, and had grown a potato crop from farm-saved seed after they accessed the potato seed locally in 2018.

The embattled farmers also alleged in the letter that PepsiCo hired a private detective agency pretending as potential buyers and took secret video footage and collected samples from farmers’ fields without disclosing its real intent after which it filed suit.

It added that at least nine farmers in three districts have been charged since 2018.