PepsiCo Withdraws One Of The Three Cases Filed Against Gujarat Potato Farmers

After announcing its decision to withdraw the case against the potato farmers, PepsiCo has withdrawn one of the three lawsuits. The multi-billion dollar company had filed suit against Gujarati farmers for allegedly growing a patented variety of potato.

The company, in its official statement, said that the decision was taken after a discussion with the government. It further said that the company was depending on these discussions to find a “long term and amicable resolution”.

PepsiCo withdraws one of three cases

Making a submission before the court of principal senior civil and commercial court judge SB Rahatkar at Deesa, Banaskantha district. PepsiCo told the court, “The plaintiff wishes to withdraw the captioned matter relying on its discussions with the government to find a long-term and an amicable solution of issues around its seed protection.”

In its official statement, PepsiCo said, “PepsiCo India’s submission in the Deesa court is in sync with its publicly stated position” …….i.e. “PepsiCo has been in India for the last 30 years. Over the years, the Company has developed a best in class collaborative potato farming program which has benefited thousands of farmers across the country. The program which included several market awareness initiatives has resulted in farmers getting access to higher yields, enhanced quality, training in best-in-class practices and better prices, all leading to improved livelihoods. To safeguard the larger interest of farmers, PepsiCo India was compelled to take judicial recourse to protect its registered variety. PepsiCo from the very start had also offered an amicable settlement to farmers. 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. The company remains deeply committed to the thousands of farmers we work with across the country and towards ensuring adoption of best farming practices.”

What happened

The suit was filed by the firm against potato farmers Fulchandbhai Kachchhawa and Sureshbhai Kachchhawa at the Deesa court. They were accused of growing patented FC-5 variety of potato which is used to make Lays chips. This case was filed last year.

As many as 11 farmers were sued by the company and asked for damages of Rs 1.05 crore each. While one case is withdrawn, the official decision on the other two cases is yet to come.

The case filed by PepsiCo gave way to a huge public outcry. Activists, farmers and unions sided with the affected farmers. They cited Section 39(1) (iv) of the PPV&FR Act 2001 on Chapter VI on Farmer Rights’, to support their argument.

The Ahmedabad court heard the case on April 26 where PepsiCo offered to settle down with the farmers. The farmers were asked to either stop growing the said variety altogether or if that was not possible, they were asked to enter PepsiCo’s collaborative farming programme, under which farmers would buy seeds from the company and sell the produce back. Replying to the settlement, the lawyer representing the farmers had sought time to consider the offer and reply to the court.

Also Read: PepsiCo Decides To Withdraw Case Against The Potato Farmers