PepsiCo is suing Indian farmers for growing potatoes which it claims it has the exclusive right to grow under intellectual property laws.

A spokesperson for the food and beverage giant confirmed to Sky News that the lawsuit was ongoing, although it said an amicable settlement offer had now been made.

Four potato farmers in Gujarat state were accused of illegally growing the crops which PepsiCo has exclusive rights to farm in the country after breeding them naturally, rather than developing them via genetic modification (GM).

The American company was seeking just over £100,000 in damages from each farmer.

A spokesperson told Sky News: "PepsiCo India has proposed to amicably settle with people who were unlawfully using seeds of its registered variety."


They added that the company also proposed to the farmers that they become part of its collaborative potato farming programme.

They were not being forced to join the programme, however, and could "simply sign an agreement and grow other available varieties of potatoes" - as long as they destroyed the crops they had already grown.

According to local media, lawyers for the farmers have said they would be considering Pepsi's offer before another court hearing on 12 June.

Image: Pepsi said it has now offered to settle the case with the farmers

Farmers' associations in India have spoken out against the lawsuit and offered to support the men.

In a letter to the government, these associations claimed that PepsiCo was infringing on farmers' rights to grow and sell registered crops under Indian agricultural laws.

"We believe that the intimidation and legal harassment of farmers is happening because farmers are not fully aware of [their] rights," they wrote, according to a copy of the letter seen by CNN.

CNN also reported that the letter accused PepsiCo of sending private detectives to the farmers who pretended to be potential buyers, secretly recording video of them and obtaining samples of the crops.

Pespi did not respond to those allegations.

A spokesperson told Sky News: "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 program.

"PepsiCo India remains deeply committed to resolving the matter and ensuring adoption of best farming practices," they added.