The potato sector in India, the world's second largest producer of potatoes, is undergoing a transformation. For a long time, cultivation was small-scale and traditional. With new techniques and a lot of Western knowledge, the chain is being modernized at a rapid pace. This makes the country a formidable competitor in the export market.
With over 1,4 billion inhabitants, India is the most densely populated country in the world. The sales market for food companies is therefore enormous. The population is four times as large as that of the United States and consumes an average of 25 kilos of potatoes and potato products per year. In comparison: in the US this is almost 50 kilos and in the Netherlands even 67 kilos. Theoretically speaking, there is still a lot of growth potential. Traditionally, India was heavily dependent on imports to meet the demand for potato snacks.
New varieties
In recent years, there has been considerable investment in agricultural technology to increase potato yields. The Central Potato Research Institute (CPRI) and private companies have developed new high-yielding potato varieties that are resistant to the different climatic conditions in the growing areas. New varieties such as Kufri Lima and Kufri Karan show high resistance to phytophthora.
The most popular potato variety for processing in India is by far Santana. This elongated, yellow-fleshed variety was introduced to India by McCain in 1997, when the company began building a French fry plant in Mehsana in North Gujarat. The variety was bred by the Dutch company Van Rijn, after which the breeder’s rights were acquired by KWS Group Potato in 2010. In 2016, STET Holland acquired the rights. In most countries, the breeder’s rights have now expired, but in India the variety remains protected until 2035.
Investments
The rising demand for processed potato products has led to major investments by food processing companies. International giants such as McCain Foods, ITC and Pepsico have expanded their processing facilities in India to ensure consistent production of French fries, chips and other snacks. This is also the case for Indian companies such as Haldiram’s and Balaji Wafers, which are increasing their production capacity and investing in processing.
A relatively new player is Agristo. In 2022, their factory in Bijnor in Uttar Pradesh started producing potato flakes. The family business works together with the local Masa Global Food. In early March, Princess Astrid of Belgium gave the symbolic starting signal for a new French fry production line at the same location. The initial investment of €25 million will be followed by another €80 million, which will increase production to 80.000 tons of flakes and fries per year. Agristo Masa works together with 2.500 local farmers for the supply of potatoes.
Technology
Despite its large potato production, India has traditionally suffered from significant post-harvest losses due to lack of proper storage facilities. About 30% to 40% of potatoes are lost before reaching the market. Investments in modern storage facilities help to reduce these losses. In particular, the introduction of mechanical cooling and cold storage facilities help to reduce losses. Government initiatives help farmers gain access to technology and marketing opportunities.
Precision farming is also making its entrance. Drones, satellite imagery and soil analysis are being used to optimise the use of fertilisers and irrigation. In states such as Uttar Pradesh, West Bengal and Bihar – India’s largest potato-producing regions – smart irrigation systems are helping to reduce water consumption while ensuring stable yields.
Export growth
The export market for Indian potato products is gaining momentum. Traditionally, it has focused on countries in South Asia and the Middle East. Indian exports have increased due to quality improvements and more efficient logistics. The growing demand for frozen fries, chips and other potato snacks contributes to this.
Besides Agristo Masa, more international companies have invested in Indian potato processing. In January, GreenFay Farm Foods announced the opening of a potato flake production facility in Gujarat, targeting both the domestic and export markets. In February, Indian fertilizer company KRIBHCO entered into a joint venture with Dutch potato processor Farm Frites to set up a processing plant in Shahjahanpur in Uttar Pradesh. Even local governments are investing in potato processing. In Una district, the Himachal government announced that it would finance a potato flake plant.
Potato production has been increasing steadily in recent years. According to government data, India’s total potato harvest in the 2024/25 season is expected to reach 59,57 million tonnes, up 2,59 million tonnes from the previous season.