PepsiCo offers out-of-court settlement to potato farmers in Gujarat

PepsiCo had sued four farmers for allegedly growing a registered variety of potato

Potato rep Representational image | Reuters

The tussle between multinational giant PepsiCo India Holdings Pvt. Ltd and potato farmers in Gujarat might end soon with PepsiCo offering an out-of-court settlement.

The company has filed cases against four farmers for allegedly growing a registered variety of potato. PepsiCo had demanded a total of over Rs 4 crore from the farmers.

In a hearing in the commercial court in Ahmedabad on Friday, the counsel appearing for the company proposed an out-of-court settlement to bring an end to the issue. The next hearing is to be held on June 12.

A PepsiCo spokesperson stated, "PepsiCo India has proposed to amicably settle with people who were unlawfully using seeds of its registered variety (FC5). PepsiCo has also proposed that they may become part of its collaborative potato farming programme, which will give them access to higher yields, enhanced quality, training in best-in-class practices and better prices."

PepsiCo also added, "The company was compelled to take judicial recourse as a last resort to safeguard the larger interest of thousands of farmers engaged with its collaborative potato farming programme. PepsiCo India remains deeply committed to resolving the matter and ensuring the adoption of the best farming practices."

According to the groups fighting for the rights of farmers, the farmers will study the proposal of the out-of-court settlement.

Even as the farmers have sought time to give written replies, the earlier order of the court, which had stayed the farmers from sowing and selling particular variety of potato, will remain in force.

Farmers rights groups and eminent civil society members had written to the state and Central governments seeking their intervention.

TAGS