The Indian subsidiary of PepsiCo is currently suing four farmers in India over the illegal growth of potatoes. PepsiCo is the owner of the Lays chip company, and they have a very specific type of potato that is used for their products. This potato variety is protected by PepsiCo, and the four farmers are not amongst the thousands of Indian farmers who are authorized to grow them.
PepsiCo is receiving backlash from the farmer’s union and several activists, sparking another legal battle between small business owners and global corporations in India. Similar backlash has occurred in recent memory because of other corporations like Walmart and Amazon, companies that have put smaller businesses out of business–at times having the government pass regulations to force out local business owners.
PepsiCo is India’s largest buyer of process-grade potatoes and works with thousands of local farmers to grow their special potato variety. PepsiCo is seeking 10 million Rupees ($143,000) from each farmer to repay damages for the illegally grown potatoes.
It seems as if the Indian government supports their farmers, claiming that the growth of registered crops is protected under Indian agricultural law. Whether or not they uphold this in court has yet to be seen.
This struggle between international corporations and small business owners has existed ever since the global economy came into existence. These corporations will often outsource labor to foreign countries in exchange for smaller payroll and reduced regulations. Since global corporations began these practices, local business owners have had an upward battle against these larger and more efficient companies. The small business owners must try to stay afloat as the larger corporations effectively force them into a small corner of the market.
In some cases, the charitable donations made by larger companies–think of Tom’s, the company that donates a pair of shoes for every pair bought. While these efforts are seen as charitable from the perspective of the consumer, this often decreases the ability for local businesses to succeed.