Big win for Indian farmers, court rejects PepsiCo’s appeal for patent on potato seeds used for Lay’s chips

The Delhi High Court on Saturday quashed PepsiCo’s appeal against a 2021 order that saw the revocation of its patent for a special potato variety grown for Lay’s chips. The Protection of Plant Varieties and Farmers' Rights (PPVFR) Authority of India had revoked the patent in 2021 citing Indian laws that bar an intellectual cover on seed varieties.

Dispute between Indian farmers and PepsiCo

The dispute over the seed variety, known as FC5, began in 2019. PepsiCo sued some Indian farmers for growing this variety of potatoes, known for having less moisture content, which bodes well for making chips. 

However, sensing the gravity of the situation involving farmers, the New York-based company decided to withdraw legal cases the same year and declared it will solve the issue amicably.

Farmers’ fight against PepsiCo

After PepsiCo sued Indian farmers, Kavitha Kuruganti, a farmers' rights activist, petitioned the PPVFR Authority for the revocation of intellectual protection granted to PepsiCo's FC5 potato variety. The Protection of Plant Varieties and Farmers' Rights Authority acted on Kavitha’s concerns by dismissing PepsiCo’s patent.

"The certificate of registration...is hereby revoked with immediate effect," K. V. Prabhu, the then-chairman of the PPVFR Authority said in the order.

PepsiCo later approached Delhi High Court against the revocation of the patent cover. The court in its July 5 order ruled in favour of the farmers and dismissed the company’s plea. "We are aware of the order ... and are in the process of reviewing the same," a PepsiCo India spokesperson said while reacting to the order.

Activist Kavitha Kuruganti also lauded Delhi High Court’s judgement and said, "It is good that the judgement of Justice Navin Chawla upheld the revocation order..."

What is potato’s FC5 variety?

The FC5 variety of potatoes has gained significant attention due to its association with PepsiCo, one of the world's leading food and beverage companies. 

PepsiCo has maintained that it developed the FC5 variety of potato, and registered the trait in 2016.

PepsiCo has been working closely with a group of farmers in India to cultivate the FC5 variety, which is specifically developed to meet the company's requirements for making high-quality potato chips. The group of farmers sell its produce to PepsiCo at a fixed price.