New Delhi [India], October 23 (ANI): 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, according to Global Trade Research Initiative (GTRI) in its latest note.
The note added that most of the export turnover comes from dehydrated potato granules and pellets, with additional growth coming from products such as potato flour, starch, chips, and ready-to-eat potatoes
India’s exports of dehydrated potato granules and pellets have jumped from USD 11.4 million in FY2022 to USD 63.3 million in FY2025 — a surge of more than 450 per cent in just three years.
The think tank added in the note that the rise reflects robust demand from Southeast and East Asia, where food manufacturers are scaling up production of instant noodles, snack foods, and quick-service restaurant (QSR) items.
According to the GTRI’s note, Malaysia is India’s largest buyer, with imports climbing from USD 5.1 million to USD 22.1 million, followed by the Philippines and Indonesia, which recorded extraordinary growth of 600 percent and 924 per cent, respectively.
Japan and Thailand have also more than tripled their purchases. Together, these five destinations account for nearly 80 percent of India’s total exports, which reached USD 30.2 million in just the first five months of FY2025 — signaling continued strong momentum, the note added.
Exports of other value-added potato items have also expanded rapidly, tripling from USD 6.2 million in FY2022 to USD 18.8 million in FY2025 — an overall increase of over 200 percent.
The biggest gains came from potato flour, meal, and powder, used in soups, snacks, and bakery products, which surged from USD 0.4 million to USD 5.5 million, up more than 1,100 per cent.
Shipments of canned and ready-to-eat potatoes, as well as potato chips and crisps, doubled to USD 5.3 million, while potato starch exports rose nearly fivefold to USD 2.6 million, reflecting growing regional demand for versatile potato ingredients in packaged and convenience foods.
Highlighting the factors behind the boom, the GTRI added, the surge lies a mix of regional demand and domestic capacity building. Southeast Asian economies have rapidly growing snack and QSR industries that rely on semi-processed potato inputs. 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 and China’s focus on domestic consumption.
GTRI further added that preferential tariffs under the India-ASEAN Trade in Goods Agreement and short shipping routes via ports such as Mundra, Kandla, and Chennai have further strengthened India’s price competitiveness.
On the supply side, Gujarat and Uttar Pradesh have become India’s processing powerhouses. Gujarat’s Mehsana and Banaskantha districts now host modern dehydration plants supported by contract farming and cold storage networks, while new facilities are coming up in Agra and Farrukhabad. India’s 56-million-tonne potato crop, including high-solids varieties ideal for processing, has enabled exporters to scale production.
Indian firms have also upgraded quality, earning BIS, ISO, and HACCP certifications, and diversified into granules, flakes, and pellets tailored to multinational buyers’ specifications, the note highlighted.
The think tank further added that Europe’s processors, hit by energy shocks and weather volatility, and China’s inward shift have left global buyers looking for alternatives.
“India’s steady output, improving standards, and lower cost base have turned it from an occasional supplier into a reliable, year-round source for Asian food manufacturers,” the note added. (ANI)
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