PepsiCo and India
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The potato controversy
2019, Mar- Apr
From: John Sarkar, PepsiCo faces political heat over taking farmers to court, April 30, 2019: The Times of India
New Delhi:
Political discontent is rising against US beverage and snacks major PepsiCo after its local arm took Indian farmers in Gujarat to court for allegedly infringing a patent by growing a particular variety of potato.
After the BJP and the Congress parties hit out against the New York-headquartered maker of Mirinda, Mountain Dew and Lay’s potato chips for the act, the Swadeshi Jagran Manch (SJM), an arm of the Rashtriya Swayamsevak Sangh (R S S) flayed the multinational’s move to sue the farmers.
“This is nothing but an act of extortion by PepsiCo. Seeds, plants and lives cannot be patented. PepsiCo’s move is highly illegal and unethical and it will be in their own interest, not the farmers’, to resolve the issue amicably. We will take care of our farmers,” SJM’s head Ashwani Mahajan told TOI.
PepsiCo India sued farmers in Gujarat for alleged “rights infringement” for growing FC5 potato variety used to manufacture the popular Lay’s potato chips. While the company said it has already agreed to settle the issue amicably, the farmers sought time till June 12 to respond. Monday’s development comes after executives at Pepsi-Co’s global headquarters expressed concern at its local unit’s handling of the situation. “The local team at Pepsi-Co India are fully empowered to “act as owners” and equipped to take decisions based on local market conditions,” a PepsiCo India spokesperson said.
Mahajan, however, said, PepsiCo’s move has set a wrong precedent that may be followed by other MNCs to forcibly coerce Indian farmers to fall in with their demands. “The government should take a strong stand against such companies and it should serve as a deterrent for global players,” he said.
“PepsiCo continues to maintain that they may become part of its collaborative potato farming programme. This programme gives them access to higher yields, enhanced quality, training in bestin-class practices and better prices. In case, they do not wish to join this program, they can simply sign an agreement and grow other available varieties of potatoes,” the PepsiCo India spokesperson said. He said the company was compelled to take the judicial recourse as a last resort to safeguard the larger interest of thousands of farmers that are engaged with its collaborative potato farming programme.
Willing to move SC, Gujarat farmers tell HC
Ahmedabad:
The legal battle between Gujarat farmers and PepsiCo over growing a particular variety of potatoes might soon reach the Supreme Court. The two farmers from North Gujarat, who were first sued by the company over its registered variety of potatoes, told the Gujarat high court on Monday that they were “desirous of approaching the Supreme Court”. The company has sued the farmers for growing and selling this potato type, alleging that the cultivation was in violation of provisions of the Protection of Plant Varieties and Farmers Rights Act. TNN
