How Capacity Expansion, Proximity to ASEAN Drive Potato Export Boom

Copyright © HT Digital Streams Limited All rights reserved. India’s processed potato exports on an upswing Vijay C Roy 4 min read 22 Oct 2025, 09:31 IST Half-peeled raw potatoes ready to be stolen at Jumboking Potato Vada plant in Mumbai, on May 23, 2008. Photo: ABHIJIT BHATLEK Shift is driven by regional shift. the expansion of contract farming and modern plants in India, establishing it as a reliable, year-round source for Asian food manufacturers. India is fast emerging as a major player in the global market for processed potato products, with exports of frozen fries, chips, nuggets, flakes and other value-added items showing a sharp increase in recent years. The boom is being driven by increased cultivation of processing-grade potato varieties in states such as Gujarat and Uttar Pradesh, along with growing demand from West Asia and Southeast Asia. Exports of dehydrated potato kernels and grains rose more than 450% in three years—from $11.4 million in FY22 to $63.3 million in FY25—making it India’s fastest-growing processed food export category, according to commerce ministry data reviewed by Mint. Exports of other processed potato products, including flour, starch, chips and ready-to-eat items, tripled to $18.8 million in the same period, with potato flour exports alone rising more than 1,100%, the data showed. Almost 80% of India’s processed potato shipments are destined for Malaysia, the Philippines, Indonesia, Japan and Thailand, underscoring the country’s growing integration into Southeast Asia’s snack and convenience food supply chain. States like Gujarat and Uttar Pradesh are driving the boom through new dehydration plants, contract farming and modern cold chain infrastructure. “India’s exports of processed potato products are increasing sharply, indicating the country’s growing foothold in Asia’s fast-growing snack and convenience food supply chain. Most of the export turnover comes from dehydrated potato chips and granules, with additional growth in products such as potato flour, starch, crisps and ready-to-eat,” says A cofoystavaunder. Research Initiative (GTRI). Asian demand According to the data, India’s exports of dehydrated potato kernels and grains rose from $11.4 million in FY22 to $63.3 million in FY25—a rise of more than 450% in just three years. The boom reflects strong demand from Southeast and East Asia, where food manufacturers are expanding production of instant noodles, snacks and quick service restaurant (QSR) items. Malaysia remains India’s largest buyer, with imports rising from $5.1 million to $22.1 million in FY25, followed by the Philippines and Indonesia, both of which posted strong triple-digit growth over the past three years. Japan and Thailand also more than tripled their purchases. Together, these five destinations account for nearly 80% of India’s total processed potato exports, which reached $30.2 million in the first five months of FY26 alone, indicating continued strong momentum. Exports of other value-added potato items expanded rapidly, tripling from $6.2 million in FY22 to $18.8 million in FY25—an overall increase of more than 200%. The biggest jump came from potato flour, meal and powder, which rose from $0.4 million to $5.5 million, more than 1,100%. Shipments of canned and ready-to-eat potatoes, as well as chips and crisps, doubled to $5.3 million, while potato starch exports rose nearly fivefold to $2.6 million, reflecting rising regional demand for versatile potato-based ingredients, according to government data. Moving up the value chain This is significant as Indian companies expand their presence in the global processed food value chain, moving beyond raw exports to high-value products such as dehydrated potato granules, flakes and fries, to meet growing demand across Asia and the Middle East. In this context, Ponty Chadha’s Wave Group announced an additional investment of around ₹ 750 crore in March 2025, taking the total investment to over ₹ 1,000 crore, to add a sweet potato production line and expand the processing capacity of its Bijnor, UP, plant. Behind the boom lies a combination of regional demand and domestic capacity building. “South East Asian economies have fast-growing snack and QSR industries that rely on semi-processed potato inputs,” GTRI’s Srivastava added. “India, with its lower costs, reliable annual output and proximity to Asean, has stepped into a supply gap left by Europe’s high energy costs and poor harvests, as well as China’s focus on domestic consumption. The increase in production of high-yield processing potato varieties has played a significant role in boosting exports, said Dr. Brajesh Singh, Director, ICAR-Central Potato Research Institute (CPRI), Shimla. According to him, Gujarat and Uttar Pradesh have emerged as processing hubs for potato cultivation, with Gujarat’s Mehsana and Banaskantha districts now hosting modern dehydration plants supported by contract farming and cold storage networks. Meanwhile, new facilities are being built in Agra and Farrukhabad established. “Farmers are shifting to processed varieties, especially in Gujarat and Uttar Pradesh, as they are mostly grown under a contract farming system, which ensures buy-back arrangement and provides them with a sense of security and above all is a demand,” said Jung Bahadur Singh Sangha, a leading potato grower in Punjab. “We have in 2022 to start growing high-quality processing potato varieties in Bijnor, Uttar Pradesh, with technical cooperation from Belgian experts,” said Rajni Gupta, Chief Executive Officer (CEO), Agristo Masa Pvt. Ltd. The aim was to bring European-grade potato varieties suitable for fries and chips to India, while a sustainable farm-to-processing ecosystem is built. “The response from both local and international buyers has been very encouraging,” she added. Agristo Masa is a joint venture between Belgium’s Agristo NV and India’s Wave Group, headed by Manpreet Singh Chaddha, focused on manufacturing frozen potato products for domestic and export markets. Better quality exports India’s 60 million tonne potato crop, which includes high-solids varieties ideal for processing, has enabled exporters to scale up and diversify output into pellets, flakes and pellets tailored to global buyers’ specifications. Indian firms have also upgraded quality standards and earned BIS, ISO and HACCP certifications, improving their competitiveness in international markets have. Europe’s processors, hit by energy shocks and erratic weather, and China’s domestic market focus, have left global buyers looking for new suppliers. India’s steady output, improved standards and competitive costs have transformed it from an occasional exporter into a reliable, year-round supplier for Asian food manufacturers, Srivastava said. With strong local demand and growing domestic capacity, India’s processed potato exports – led by dehydrated grains and kernels – have emerged as one of the country’s most successful value-added agricultural export stories, highlighting its growing role in the global food processing industry. Key takeaways Exports of dehydrated potato chips and granules, the fastest growing category, have increased over the past three years increased by more than 450%, making India a major new player in the global processed potato market. Almost 80% of India’s processed potato exports are destined for key Southeast and East Asian countries, indicating strong integration with the local snack and QSR supply chains. The export boom is rooted in local developments, including the expansion of modern dehydration plants, contract farming and cultivation of high yielding processing grade potato varieties mainly in Gujarat and Uttar Pradesh. India has become a reliable, year-round supplier for Asian buyers by leveraging its lower costs and proximity to Asean, effectively filling a void left by Europe’s high energy costs and poor harvests, and China’s shift to domestic consumption. The sector attracts significant investments, such as the Wave Group’s commitment of ₹1,000 crore plus, confirming India’s successful shift from exporting raw commodities to high value-added processed foods. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #news Read next story