The R2 trillion owner of Lay's chips is suing small Indian farmers for growing a certain type of potato

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PepsiCo owns Lay's chips, as well as Gatorade and Quaker Oats.
  • PepsiCo, the owner of Lay's potato chips, is suing a small group of Indian farmers for growing a potato variety it says belongs to it alone.
  • The food and drink giant says it has had "exclusive rights" to the FL-2027 potato in India since 2016, and wants four farmers to pay $143,000 (R2 million) each for growing it without permission.
  • Dozens of activists and farmers' unions have written to India's Department of Agriculture condemning the suit and accusing PepsiCo of intimidation.
  • Visit Business Insider's homepage for more stories.

PepsiCo, the $177 billion (R2.5 trillion) owner of potato chip brand Lay's, has sued a group of farmers in India for growing a variety of potato it says it owns the exclusive rights to.

The company is seeking reparations of $143,000 (R2 million) each from four farmers accused of growing the FL-2027 potato, which PepsiCo says it has had exclusive rights to in India since 2016, according to legal documents submitted to a district court in Ahmedabad, Gujarat, on April 11, and seen by CNN.

"PepsiCo is India's largest process grade potato buyer and amongst the first companies to work with thousands of local farmers to grow a specific protected variety of potatoes for it," a spokesperson told CNN.

"In this instance, we took judicial recourse against people who were illegally dealing in our registered variety."

PepsiCo says it has given permission to several hundred Indian farmers to grow the special potato before, but not to the farmers in the lawsuit.

Two of the farmers are named as Fulchand Kachchhawa and Suresh Kachchhawa, both from near the city of Deesa, in the northwestern region of Gujarat.

PepsiCo say the growing of FL-2027 without permission is a rights infringement under Section 64 of the Protection of Plant Varieties and Farmers' Rights Act 2001.

Lawyers, activists, and farmers unions have rallied to the farmers' defence.

More than 190 activists penned a joint letter to the Indian Department of Agriculture opposing the "false and untenable" lawsuit from the food and drink behemoth, India Today wrote. PepsiCo also owns brands such as Gatorade, Quaker Oats, and of course, Pepsi.

Activists are also raising legal aid to help the farmers fight the case.

One of the signatories, Kapil Shah of advocacy group Jatan, told CNN PepsiCo's actions were "against food sovereignty" and the "sovereignty of the nation."

"We will fight it out, no matter how big the company," Shah said. "Pepsi has made a huge mistake."

The case will be heard in Ahmedabad district court on Friday.

PepsiCo did not immediately respond to a request for comment from Business Insider.

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