Pepsico Proposes to Settle Lawsuit Against Gujarat Potato Farmers

Pepsico offered to settle if the farmers gave an undertaking to buy this specific variety of seeds from the company

(Photo: The Quint)

Food and beverages giant PepsiCo on Friday, 26 April, offered to settle lawsuits against four farmers whom it had dragged to court for "illegally" growing a variety of potatoes "registered" by the company.

Nine farmers from Sabarkantha and Aravalli districts have been sued by Pepsico for allegedly growing a variety of potatoes for which it has claimed Plant Variety Protection (PVP) rights.

Two days ago, over 190 activists came out in support of these farmers and requested the Union government to ask the multinational giant to withdraw its "false" cases against the Gujarat farmers.

In a letter to the Ministry of Agriculture, 194 signatories sought financial aid and protection of rights of farmers who have been sued for growing and selling the potato variety called FC-5 potato, for which PepsiCo India Holdings claimed to have obtained “exclusive rights in the country in 2016”.

Meanwhile the Gujarat government has decided to side with the potato farmers to help them reach a meaningful solution. The government stepped in after senior Congress leader and Rajya Sabha MP Ahmed Patel urged the state government to not turn away from the farmers’ plight.

Settlement Proposal to Be Discussed With Farmers

During a hearing at Ahmedabad Commercial Court on Friday, 26 April, the firm offered to settle the dispute if the farmers gave an undertaking to purchase this specific variety of seeds from the company and thereafter sell the potato produce to it.

Senior counsel Anand Yagnik, who appeared for the four farmers of Sabarkantha district, told the court he would discuss the settlement proposal with the farmers and inform the court about the outcome in the next hearing.

On Friday, Commercial Court Judge M C Tyagi extended its previous order restricting the farmers from using the patented seeds till the next hearing, which was kept for 12 June.

The multinational giant has sought damages of Rs 1 crore from each of the four farmers of Sabarkantha in its suit at the commercial court, and Rs 20 lakh from each of the farmers sued at a district court in Modasa town of Arvalli district.

In a statement, PepsiCo said it was "compelled" to take the legal path to safeguard the interests of farmers associated with the firm.

“PepsiCo India has proposed to amicably settle with people who were unlawfully using seeds of its registered variety. PepsiCo has also proposed that they may become part of its collaborative potato farming program. This program gives them access to higher yields, enhanced quality, training in best-in-class practices and better prices,” the statement read.

"In case, they do not wish to join this program, they can simply sign an agreement and grow other available varieties of potatoes. It is significant to note that the company's collaborative potato farming program is best in class and is built on strong backward and forward linkages that improve livelihoods by using protected seeds," it said.

“The company was compelled to take the judicial recourse as a last resort to safeguard the larger interest of thousands of farmers who are engaged with its collaborative potato farming program. PepsiCo India remains deeply committed to resolving the matter and ensuring adoption of best farming practices,” the statement said.

Pepsico's Action Against Farmers 'Brazenly Wrong': Ahmed Patel

Terming PepsiCo's legal action against Gujarat farmers for growing a variety of potatoes "registered" by the company as "brazenly wrong", senior Congress leader Ahmed Patel Saturday said corporate interests cannot dictate what farmers must or must not cultivate.

He also said that the state government should not keep its eyes "shut" to the development.

“Pepsi’s decision to take Gujarat’s potato grower farmers to court is ill-advised & brazenly wrong. It is in violation of the farmers right under PPVFR Act. The state govt shouldn’t keep its eyes shut. Corporate interest cannot dictate what our farmers must or mustn’t cultivate.” 

Ahmed Patel, Congress Leader, Member of Rajya Sabha

The Congress leader was referring to the Protection of Plant Variety and Farmers Right Act, 2001.