Farmers from Gujarat were sued by the US Multinational Pepsico for ‘illegally’ growing potatoes of a certain variety that has been registered by Pepsico India. This potato variety is used in the manufacture of 'Lays' chips. Demanding damages worth Rs 1.05 crore from each farmer, the company claims that it had registered this variety with the Protection of Plant Varieties and Farmers Rights Act 2001.

Pepsico, on the other hand, has mentioned in court that it is willing to settle out of court if the farmers sign an agreement to sell the entire produce to them and join their collective farming initiative.

Farmers’ groups across India see this as a precedent-setting threat, which will allow more companies to file litigations against farmers for growing other crops.