India’s processed potato exports are on an upswing
The surge is driven by regional supply chain shifts and the expansion of contract farming and modern plants in India, establishing it as a reliable, year-round source for Asian food manufacturers.
India is rapidly emerging as a major player in the global market for processed potato products, with exports of frozen French fries, chips, nuggets, flakes, and other value-added items showing a sharp increase over the past few years. The surge is driven by increased cultivation of processing-grade potato varieties in states such as Gujarat and Uttar Pradesh, coupled with growing demand from West Asia and South-East Asia.
Exports of dehydrated potato granules and pellets have jumped over 450% in three years—from $11.4 million in FY22 to $63.3 million in FY25—making them 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, have tripled to $18.8 million during the same period, with potato flour exports alone rising more than 1,100%, the data showed.
Nearly 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 such as 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 rising sharply, signalling the country’s growing foothold in Asia’s fast-expanding snack and convenience food supply chain. Most of the export turnover comes from dehydrated potato granules and pellets, with additional growth from products such as potato flour, starch, chips, and ready-to-eat potatoes," said Ajay Srivastava, co-founder, Global Trade Research Initiative (GTRI).
Asian demand
According to the data, India’s exports of dehydrated potato granules and pellets have soared from $11.4 million in FY22 to $63.3 million in FY25—a rise of more than 450% in just three years. The surge reflects robust demand from South-East 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 have posted strong triple-digit growth over the past three years. Japan and Thailand have 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 just the first five months of FY26, indicating continued strong momentum.
Exports of other value-added potato items have 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 surged from $0.4 million to $5.5 million, up more than 1,100%.
Shipments of canned and ready-to-eat potatoes, as well as potato 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 the government data.
Moving up the value chain
This is significant as Indian companies are expanding their presence in the global processed food value chain, moving beyond raw exports to high-value products such as dehydrated potato granules, flakes, and French fries, in order 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, bringing the total investment to over ₹1,000 crore, to add a French fries production line and expand the processing capacity of its Bijnor, UP, plant.
Behind the surge lies a combination of regional demand and domestic capacity building. “South-East Asian economies have rapidly growing snack and QSR industries that rely on semi-processed potato inputs," added GTRI’s Srivastava. “India, with its lower costs, reliable year-round 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-yielding 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 hubs for potato cultivation processing, 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 established in Agra and Farrukhabad.
"Farmers are shifting to processed varieties, especially in Gujarat and Uttar Pradesh, as mostly they are grown under a contract farming system, which assures buy-back arrangement and offers a sense of security to them and above all, there is a demand," said Jung Bahadur Singh Sangha, a leading potato grower in Punjab.
“We began cultivating high-quality processing potato varieties in Bijnor, Uttar Pradesh, in 2022, with technical collaboration from Belgian experts," said Rajni Gupta, chief executive officer (CEO), Agristo Masa Pvt. Ltd. The aim was to bring European-grade potato varieties suited for fries and chips to India, while building a sustainable farm-to-processing ecosystem. "The response from both domestic 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 producing 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 output and diversify into granules, flakes, and pellets tailored to global buyers’ specifications. Indian firms have also upgraded quality standards, earning BIS, ISO, and HACCP certifications, which have enhanced their competitiveness in international markets.
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, improving 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 regional demand and expanding domestic capacity, India’s processed potato exports—led by dehydrated granules and pellets—have emerged as one of the country’s most successful value-added agricultural export stories, underscoring its growing role in the global food processing industry.
- Exports of dehydrated potato granules and pellets, the fastest-growing category, have surged by over 450% in the past three years, making India a major new player in the global processed potato market.
- Nearly 80% of India's processed potato exports are destined for key Southeast and East Asian countries, indicating strong integration with the regional snack and QSR supply chains.
- The export boom is rooted in domestic developments, including the expansion of modern dehydration plants, contract farming, and the cultivation of high-yielding processing-grade potato varieties, primarily 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 supply void left by Europe's high energy costs and poor harvests, and China's shift to domestic consumption.
- The sector is attracting significant investment, such as the Wave Group's ₹1,000 crore-plus commitment, confirming India's successful shift from exporting raw commodities to high-value-added processed foods.
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