US-based food and beverages giant PepsiCo on Thursday said that it will withdraw lawsuits against farmers in Arvalli and Sabarkantha district of Gujarat. Earlier during the day, farmers' welfare organisations had demanded unconditional withdrawal of cases. These organisations have claimed a moral victory, but said that they are awaiting a formal communication from the company.

"After discussions with the government, the company has agreed to withdraw the cases against the farmers," said the spokesman. PepsiCo in April sued four farmers for cultivating a potato variety 'FC5' grown exclusively for its popular Lay's potato chips.

Farmers organisations, who were fighting the lawsuits, claimed a moral victory but said that this is not enough. "This is a reiteration of the rights of farmers under Section 39 (1) (iv) of Plant Variety Protection (PVP) Rights Act to cultivate any variety that they would like to, including PVP-registered varieties. The company should also assure that such lawsuits will not be repeated in future. We are awaiting a formal communication from the company. Farmers, in consultation with legal experts, will decide the future course of action," said Kapil Shah, founding trustee and director of Jatan – A Mission for Sajiv Kheti (Organic Farming).

Earlier during the day, Jatan and Alliance For Sustainable and Holistic Agriculture (ASHA) had jointly demanded unconditional withdrawal of the cases against farmers in Gujarat. It had also demanded that Pepsico apologise to the defendant-farmers and compensate them adequately for trespassing their farms, breaching their privacy, video recording without farmers knowledge, intimidation, unnecessary expenses and harassment they have been subjected to. "This demand still exists," said Shah.

"PepsiCo should withdraw the cases unconditionally, should sign an undertaking that this will not happen to our farmers again, apologise to the defendant-farmers and compensate them adequately," said Kavitha Kuruganti, national coordinator of ASHA.

PepsiCo's lawsuits against the farmers met with a severe opposition from various cross-sections of the society. Cutting across political lines, both BJP and Congress rallied behind the farmers. The company, on Wednesday, had said that it is ready for an out-of-court settlement if farmers give an undertaking that they will purchase specific variety of seeds from the company and sell the potatoes to it. Gujarat government, had earlier said that it would implead

the case but, on Wednesday, it also said that it would work for an out-of-court settlement to resolve the issue of PepsiCo and farmers in Gujarat. Both ASHA and Jatan said that under any circumstances, farmers' interests and rights should not be compromised.

In a press statement ASHA and Jatan said that farmers are entitled to sow any seeds irrespective of source of seed, type of seed, type of registrant, type of crop, and to who and how the harvest was sold. Nothing matters except whether the farmer has sold branded seeds or not, as far as farmers' rights are concerned. It emphasised that implementation of any Act requires the 'legislative intent' also to be upheld and in this case, the very title of the Act makes it clear that farmers' seed right-share upheld over the breeder's economic right over the PVP-protected variety.

"There should be absolutely no compromise on farmers' rights and seed sovereignty. The state government should therefore make Section 39 (1) (iv) as the basis of any settlement, if at all, and anything less than that is unacceptable. It would have failed all the farmers in India and not just the sued farmers in question, if it succumbs to corporate lobbying here. Indian farmers cannot pardon that," said Shah.

HIGHLIGHTS

Company officials to meet chief secretary, Agri Sec on Friday

Farmers organisations, who were fighting the lawsuits, claimed a moral victory. It had also demanded that Pepsico apologise to the defendant-farmers and compensate them

PepsiCo’s lawsuits against farmers met with severe opposition from various cross-sections of the society.

(With inputs from Reuters)