India’s processed potato exports experienced a whopping increase of 450% from the financial years 2022 to 2025, primarily propelled by robust demand from Southeast and East Asian markets, coupled with strategic advancements in domestic infrastructure and favorable global market conditions, according to a recent report by the Global Trade Research Initiative (GTRI).
The category of dehydrated potato granules and pellets represented the most significant growth, with exports rising from US$11.4 million in FY2022 to US$63.3 million in FY2025. Additionally, potato flour witnessed an exceptional increase of 1,100% during the same timeframe.
Approximately 80% of India’s processed potato exports were directed to five principal markets. Malaysia emerged as the largest importer, with purchases escalating to US$22.1 million in FY2025. Exports to The Philippines surged by 600%, while exports to Indonesia recorded an impressive increase of 924%. Moreover, both Japan and Thailand more than tripled their import volumes, the finnancial media quoted Ajay Srivastav, founder of GTRI, as saying.
Growth drivers
Several global factors contributed to this surge in exports, including a supply gap, India’s reliable supply, and heightened regional demand. Europe, traditionally recognized as a major supplier, has faced challenges due to escalating energy costs and unpredictable harvests. Concurrently, China has redirected its focus towards meeting domestic demand.
This shift has facilitated India’s emergence as a dependable, year-round, and cost-effective supplier for the Asian snack food and quick-service restaurant (QSR) industries.
The rapidly expanding snack food and QSR markets in Southeast and East Asia have generated significant demand for processed potato inputs such as granules and pellets.
Numerous domestic factors have played a crucial role in this growth trajectory. These include the establishment of modern infrastructure, encompassing advanced dehydration facilities and cold-chain networks, as well as the increased cultivation of appropriate potato varieties through contract farming.
In Gujarat, the Mehsana and Banaskantha districts harbor dehydration facilities integrated with cold storage systems, while new plants are being established in Agra and Farrukhabad to further enhance production capacity.
Indian enterprises have elevated quality standards to comply with international certifications, and favorable trade policies along with efficient shipping routes have bolstered competitiveness.
The remarkable rise in processed potato exports underscores India’s growing capabilities in value-added agriculture and its strategic transition towards becoming a pivotal player in both regional and global food supply chains.
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Naresh Khanna – 10 February 2025
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