Processed potato products from India gaining ground in Southeast Asian markets: GTRI

India's processed potato products are making greater inroads into Southeast Asian markets, driven by rising demand for snacks in those countries and rapid infrastructure development for the sector in states such as Gujarat and Uttar Pradesh, a report said on Thursday.

Think tank GTRI said that exports of dehydrated potato granules and pellets have surged from USD 11.4 million 2021-22 to USD 63.3 million in 2024-25, making them India's fastest-growing processed food export category.

Shipments of other processed potato products which are recording healthy growth rates include flour, starch, chips, and ready-to-eat items.


Exports of these items have risen from USD 6.2 million in 2021-22 to USD 18.8 million in the last fiscal.

"Nearly 80 per cent of shipments go to Malaysia, the Philippines, Indonesia, Japan, and Thailand, reflecting India's integration into Southeast Asia's snack and convenience-food supply chain," Global Trade Research Initiative (GTRI) Founder Ajay Srivastav said.

He said that states like Gujarat and Uttar Pradesh are driving the boom with new dehydration plants, contract farming, and cold-chain infrastructure, supported by a 56-million-tonne annual potato crop.

As Europe struggles with energy costs and erratic harvests and China prioritises domestic demand, India has emerged as a reliable, low-cost, year-round supplier for Asia's snack and QSR (quick-service restaurant) industries, he added.

Malaysia is India's largest buyer of dehydrated potato granules and pellets, with imports climbing from USD 5.1 million to USD 22.1 million.

It was followed by the Philippines and Indonesia.

Japan and Thailand have also increased their purchases, Srivastava said, adding together, these five destinations account for nearly 80 per cent of India's total exports.

"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," he said.

On the supply side, Gujarat and Uttar Pradesh have become India's processing powerhouses, he noted.

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.

He also said 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," he added.