Introduction
In a major ruling on agricultural intellectual property and farmers' rights, the Supreme Court of India on 13 August 2026 upheld the plant variety registration granted to PepsiCo India Holdings for its proprietary hybrid potato variety FL 2027 (commercialised as FC5), used exclusively in manufacturing Lay's potato chips.
Key Holdings of the Supreme Court
The apex court bench delivered crucial legal clarifications balancing plant breeders' rights with statutory farmers' rights under the Protection of Plant Varieties and Farmers' Rights (PPVFR) Act, 2001:
- Section 34(h) Interpretation: The Court ruled that a valid certificate of registration cannot be revoked under Section 34(h) (public interest) merely because the registered breeder initiated legal proceedings against farmers, particularly when such lawsuits were subsequently withdrawn unconditionally.
- Farmers' Absolute Shield under Section 39(1)(iv): The bench emphatically reiterated that Indian farmers enjoy an absolute statutory right under Section 39(1)(iv) of the PPVFR Act to save, use, sow, resow, exchange, share, or sell farm produce, including seeds of a protected variety, provided they do not sell branded seeds in commercial packaging.
- Affirmation of Delhi High Court Order: The Supreme Court dismissed the appeal against the January 2024 Delhi High Court division bench verdict, restoring PepsiCo's registration till 2031.
History of the Dispute
In 2016, PepsiCo registered FL 2027 under the PPVFR Act. In 2018–19, PepsiCo filed lawsuits against nine small farmers in Gujarat claiming patent infringement, sparking widespread national outcry. Although PepsiCo withdrew the suits in May 2019, the PPVFR Authority revoked PepsiCo's certificate in December 2021 citing public interest. The Delhi High Court overturned the revocation in 2024, which the Supreme Court has now affirmed.
Key Facts
- Case Title: Plant Variety Registration Dispute of FL 2027 (FC5) Potato
- Governing Statute: Protection of Plant Varieties and Farmers' Rights (PPVFR) Act, 2001
- Key Provisions: Section 34(h) (Revocation grounds) & Section 39(1)(iv) (Farmers' rights to save/sow seeds)
- Company: PepsiCo India Holdings Pvt. Ltd.
- Commercial Use: Lay's Potato Chips manufacturing (low moisture, high solid content)
Exam Perspective
For UPSC and TNPSC examinations, this case is a vital reference for Intellectual Property Rights (IPR in Agriculture), PPVFR Act 2001 vs UPOV Convention, TRIPS Agreement, and Farmers' Rights in GS Paper III.
Conclusion
The verdict establishes a balanced precedent in agricultural jurisprudence, maintaining the validity of formal plant breeding registrations while upholding the unique and inalienable statutory protections guaranteed to Indian farmers.