Annual Report 2025: Indian Potato Sector Achieves Record Exports & Production Growth.

The Indian potato sector 2025 witnessed a transformative year, with the country emerging as a formidable force in the global potato market. Unlike previous years dominated by traditional powerhouses of Northern Europe or North America, 2025 marked India’s aggressive ascent as a top-tier competitor. As the world’s second-largest potato producer, India’s role in global trade underwent fundamental transformation, leveraging record harvests of 58.1 million tonnes and competitive pricing to disrupt the frozen french fry market across Asia and the Middle East.

The global potato market witnessed a seismic shift in 2025, defined not by the traditional powerhouses of Northern Europe or North America, but by the aggressive ascent of India. Long established as the world’s second-largest producer of tubers, India’s role in the global trade matrix underwent a fundamental transformation throughout the calendar year. No longer content with merely supplying fresh table potatoes to immediate neighbours, the Indian industry leveraged a record harvest and highly competitive pricing to disrupt the global frozen french fry market. By undercutting established European and North American suppliers, India carved out significant market share across Asia and the Middle East, signalling its arrival as a top-tier competitor in the value-added processing sector.

Indian Potato Sector 2025: Production Overview

The bedrock of India’s 2025 trade performance was a robust production base. Official figures released by India’s Agriculture Ministry in June 2025 pegged the 2024/25 production at 58.1 million tonnes. This  output provided the raw material necessary to fuel an expanding processing sector while maintaining domestic food security.

This abundance was critical as it allowed Indian exporters to maintain volume despite fluctuations in regional harvests. While weather conditions challenged growers in some specific regions, the overall national output remained resilient, cementing India’s status as the only country producing over 33 million tonnes more than its nearest rival (excluding China),. This massive volume of raw material provided the necessary scale to support a burgeoning export strategy focused on aggressive price competitiveness.

2025 Export Performance: India’s Market Breakthrough

The defining narrative of the Indian potato industry in calendar year 2025 was the unprecedented expansion of its frozen french fry exports. The year was characterised by a succession of broken records as Indian processors looked outward.

The momentum began early in the year. In February 2025, frozen fry exports broke the 20,000-tonne barrier for the first time, reaching 20,284 tonnes—a 46.1% increase over the same month in the previous year. This upward trend accelerated into March, setting a new record of 22,098 tonnes, a 10.7% increase year-on-year.

However, the peak of this export drive occurred in the summer. July 2025 saw Indian fry exports hit a new all-time high of 25,318 tonnes, a staggering 77.5% increase compared to July 2024. Even as the year progressed, volumes remained historically high; August saw shipments of 24,659 tonnes, and September maintained momentum with 24,589 tonnes.

By the end of September 2025, India’s 12-month export total had reached 234,056 tonnes, marking a 43.9% increase over the previous year. This surge in volume was accompanied by a significant rise in value; the 12-month export earnings reached a record ₹22.2 billion.

Price Competitiveness Strategy in 2025

India’s rapid expansion into global markets was driven primarily by a strategy of aggressive pricing. As European and North American suppliers grappled with high input costs and currency fluctuations, India consistently offered substantially lower prices.

Throughout 2025, Indian export prices trended downward, making their products increasingly attractive to price-sensitive markets. In February, the average export price was ₹97,195/tonne, down 7.3% on the previous year. By May, the price had fallen further to ₹94,272/tonne, and by July, it dropped to ₹91,686/tonne—a 6.8% decrease year-on-year.

By September 2025, the average export price held steady at ₹91,847/tonne, which was 3.5% lower than the previous year. This pricing strategy was instrumental in capturing market share; for example, in May, India offered fries to Malaysia at ₹98,616/tonne, and to Saudi Arabia at a highly competitive ₹88,792/tonne.

Market Diversification: Conquering the Middle East

While Southeast Asia remained a stronghold, the most dramatic shifts in 2025 occurred in the Middle East. Indian exporters successfully targeted the Gulf states, capitalizing on geographic proximity and pricing to displace European dominance.

Saudi Arabia emerged as a star market for Indian processors. In the 12 months leading to August 2025, exports to Saudi Arabia skyrocketed by 314% to reach 20,377 tonnes. In July alone, Saudi Arabia imported 3,253 tonnes of Indian fries, an 885% increase compared to the same month the previous year. This surge was facilitated by a highly competitive price point of ₹81,537/tonne, significantly undercutting competitors. By September 2025, sales to Saudi Arabia for the month reached 5,185 tonnes, a 184% increase year-on-year, with prices dropping further to ₹78,837/tonne,.

The United Arab Emirates (UAE) showed a similar appetite for Indian product. Annual sales to the UAE exploded by over 406% to 15,358 tonnes by August. In February alone, exports to the UAE jumped by 706%. By September 2025, India had firmly established itself as a critical supplier to the region, exporting 17,295 tonnes over the 12-month period, a 133% increase.

The Battle for Southeast Asia

In Southeast Asia, India engaged in fierce competition with China to fill the vacuum left by higher-priced US and European products.

The Philippines remained India’s largest single export market. Despite intense pressure from Chinese suppliers, India maintained a strong foothold. In July 2025, sales to the Philippines surged by 141.8% to 7,129 tonnes, driven by a price reduction to ₹86,908/tonne. Over the 12 months ending in September 2025, the Philippines absorbed 57,200 tonnes of Indian fries, representing a 25.0% increase.

Malaysia proved to be a major growth area. Indian exports to Malaysia increased by 222% in the year ending December 2024. This trend continued through 2025; in September alone, sales to Malaysia rose by 153.1% to 2,984 tonnes. By offering prices such as ₹92,416/tonne in July, India successfully competed for market share against other low-cost suppliers.

However, the Thai market proved more difficult. Exports to Thailand fell by 52.0% in the year ending July 2025, dropping to 19,313 tonnes. In May 2025, sales to Thailand plummeted by 65.9%. This indicated that while India was highly competitive against Western suppliers, it faced a fierce battle in specific Asian markets where prices remained relatively high at ₹100,731/tonne in July.

New Frontiers: Japan and Beyond

Perhaps the most significant indicator of India’s rising quality standards was its breakthrough into the Japanese market—traditionally the reserve of high-quality US products.

In the year ending August 2025, Indian fry exports to Japan surged by 112% to 10,815 tonnes. In September 2025, shipments to Japan jumped by 68.5% to 1,415 tonnes. Even in the highly discerning South Korean market, India began to make inroads, exporting 151 tonnes in September 2025, a 55.7% increase.

The Fresh (Ware) Potato Trade

While the processing sector grabbed headlines, the trade in fresh (ware) potatoes remained a vital component of the Indian potato economy, characterised by high volumes but fluctuating demand from key neighbours.

In the 2024 calendar year, India achieved record ware exports of 536,138 tonnes. However, as 2025 progressed, the sector faced headwinds. By August 2025, annual ware exports had dipped by 3.9% to 490,008 tonnes.

This decline was largely attributed to the loss of the Bangladesh market. In 2024, Bangladesh had been a major buyer, but in 2025, demand evaporated, with zero exports recorded in months like April and September.

Conversely, Nepal solidified its position as the primary destination for Indian fresh potatoes. Nepal consistently absorbed large volumes, accounting for nearly half of all sales. In July 2025, Nepal purchased 15,026 tonnes, representing 42% of India’s total ware exports for the month.

The Gulf region also remained a critical outlet for fresh potatoes. Oman consolidated its position as India’s second-largest market, with annual purchases rising 17.6% to 55,249 tonnes by April. Kuwait and the UAE also increased their intake, undeterred by rising prices. For example, in May 2025, the average export price for Indian ware potatoes reached a record ₹24,003/tonne.

Dehydrated Products and Starch

Beyond fries and fresh tubers, India continued to expand its footprint in the dehydrated potato sector (flakes and flour). This sector provided a crucial outlet for surplus production and further diversified India’s export portfolio.

India made significant gains in the European market for dehydrated products, capitalizing on shortages and high prices within the EU. In the year ending October 2024, India exported 40,672 tonnes of flakes and flour, a 17.0% increase. India’s flake exports to Asian neighbors also surged. Exports to Malaysia rose by nearly 48% to 12,795 tonnes and to the Philippines by 43.8% to 4,688 tonnes in the 2023/24 period.

Future Outlook for Indian Potato Sector Beyond 2025

The calendar year 2025 marked a definitive turning point for the Indian potato industry. No longer a sleeping giant restricted to domestic consumption and regional fresh trade, India emerged as a structural competitor in the global processed potato market.

By leveraging a record harvest and maintaining aggressively low export prices—often significantly lower than Western competitors—India successfully captured market share in the Middle East and Southeast Asia. The explosion in frozen fry exports, reaching over 234,000 tonnes annually by September, combined with sustained fresh exports to Nepal and the Gulf, demonstrates a resilience and ambition that has reshaped global trade flows.

As European and North American suppliers grappled with tariffs, high costs, and stagnant demand, India filled the void. While challenges remain in stabilizing farm-gate prices and managing regional competition with China, the performance of 2025 confirmed that the Indian potato industry has successfully pivoted toward a value-added, export-oriented future.