PEPSICO Proposes settlement to Potato farmers whom they SUED

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Why in News?

  • Food and beverages giant PepsiCo on Friday offered to settle lawsuits against four farmers who it had dragged to court for allegedly illegally growing a variety of potatoes “registered” by the company.


  • Nine farmers from Sabarkantha and Aravalli districts are being sued by PepsiCo for allegedly growing a variety of potatoes for which it has claimed Plant Variety Protection rights.
  • During a hearing in the commercial court in Ahmedabad, 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 produced to
  • The multinational giant has sought damages of Rs 1 crore from each of the four farmers in its suit filed at the commercial court in Ahmedabad, and Rs 20 lakh from each of the farmers sued at a district court in Modasa town of Arvalli
  • Over 190 activists came out in support of these farmers requesting the Union government
  • to ask PepsiCo India to withdraw its “false” cases against Gujarat farmers.
  • In a letter to the Ministry of Agriculture, the 194 signatories sought financial aid and protection of rights of farmers who have been sued for growing and selling a potato variety called FC-5 potato, for which PepsiCo India Holdings
  • claimed to have obtained “exclusive rights in the country in 2016”.

The Protection of Plant Varieties and  Farmers’  Rights  (PPV&FR)  Act,  2001:

  • Enacted by India in 2001 adopting sui generis It is in conformity with International Union for the Protection of New Varieties of Plants (UPOV), 1978.
  • The legislation recognizes the contributions of both commercial plant breeders and farmers in plant breeding activity and also provides to implement TRIPs in a way that supports the specific socio-economic interests of all the stakeholders including private, public sectors and research institutions, as well as resource-constrained

Objectives of the PPV & FR Act, 2001:

  • To establish an effective system for the protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of
  • To recognize and protect the rights of farmers in respect of their contributions made at any time in conserving, improving and making available plant genetic resources for the development of new plant
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