New York (CNN Business) PepsiCo has offered to stop pursuing four small farmers in India it accuses of illegally growing a variety of potatoes registered for exclusive use in its Lays chips.

PepsiCo PEP The company's Indian subsidiary filed lawsuits against the farmers earlier this month. They were heard by a court in the Indian state of Gujarat on Friday, when a lawyer foroffered to drop the case provided the farmers join thousands of others in the company's authorized cultivation program.

"That was a discussion that happened in the court today," a PepsiCo spokesperson told CNN. "We told them, why don't you join our program and we will provide seeds ... Either join us or grow other potatoes. That way, we are willing to let go of the case."

A lawyer for the farmers has asked for time to consider the offer. The next court hearing is due June 12.

Walmart WMT Amazon AMZN Farmer unions and activists have been fighting back against the food and beverage maker over the case, the latest battle in India between local businesses and big global players. Small retailers have been protesting against companies likeand— claiming the American giants are unfairly destroying their business — and even succeeded in getting the government to put in some restrictions

Read More