Gujarat has emerged as the epicentre of India’s remarkable potato transformation, pivoting the humble tuber from a mere staple to a sophisticated global commodity. Once heavily reliant on imports for its burgeoning fast-food industry, India has undergone a significant “U-turn” in its frozen potato sector, largely driven by the innovations and investments centered in Gujarat.
From Import Dependency to Export Prowess
A little over a decade ago, in 2010-11, India was importing approximately 7,800 tonnes of frozen potato products to meet the demands of its fast-food sector. Today, that figure has plummeted to a mere 55 tonnes in 2023, showcasing a dramatic boom in domestic processing capacity. Gujarat is at the heart of this transformation, accounting for around 80 per cent of India’s processed potato production. This growth is a direct response to the rapid expansion of the fast-food industry and the increasing consumer appetite for items like fries, hash browns, and ready-to-cook frozen products.
Leading this charge are homegrown companies such as Iscon Balaji, Amul, Falcon Agrifriz, Hyfun foods etc which have strategically invested in advanced processing technologies and a robust network of high-end cold chain facilities. Iscon Balaji Foods, for instance, which opened its first plant in 2012, has scaled impressively, now operating four facilities in Gujarat, employing roughly 1,000 workers, and partnering with 8,000 contract farmers. Chandubhai Virani, owner of Iscon Balaji, highlighted the immense potential, stating that their profit grew from approximately Rs 4 crore thirteen years ago to Rs 1,500 crore today, driven by steadily rising demand for frozen potato. Similarly, Hyfun food products began production in 2015, with its CEO and MD, Haresh Karamchandani, having foreseen the potential a decade prior. Initially, Indian companies had to convince international buyers of their quality, but now, “Indian fries are on shelves and menus across the world”. HyFun’s first major orders came from Burger King India, followed by KFC.
The Science of the Spud: A Backbone for Industry
A crucial catalyst in this revolution has been the Central Potato Research Institute (CPRI), operating under the Indian Council of Agricultural Research (ICAR). Since the 1990s, CPRI has been instrumental in developing potato varieties specifically suited for processing. In 1998, after eight years of dedicated research, they introduced India’s first two potato processing varieties: Kufri Chipsona-1 and Kufri Chipsona-2. They have continued to innovate, developing varieties like Chipsona-3, Chipsona-5, Frysona, and Fryom, all characterised by low sugar and high dry matter content, which are essential for producing crispier fries that absorb less oil and ensure better colour and quality in chips and fries. Dr RK Singh, head of CPRI, Meerut, describes this as CPRI’s “backbone” support to the industry, providing new varieties, region-specific guidance, and agronomy advice. This scientific backing has played a vital role in transforming potatoes into an “industry crop”.
Contract Farming: Empowering Farmers and Stabilising Incomes
The shift to processing has significantly benefited farmers through the adoption of contract farming models. Farmers who previously faced volatile prices at the mandi (market), now enjoy buyback assurance and comprehensive support with seeds and crop guidance. This has translated into more secure and higher incomes for farmers.
Sureshbhai Patel, who started contract farming in 2011. This year, he earned around Rs 1 crore, with Rs 60 lakh as pure profit. Beyond guaranteed prices, companies like Iscon Balaji have also found profitable uses for previously discarded small-sized potatoes by establishing potato flake production plants, ensuring that “every potato has value”. While contract farming isn’t entirely risk-free (farmers are vulnerable to weather shocks and quality rejections), Gujarat farmers generally find it advantageous. Government initiatives like the Model Contract Farming Act, 2018, and the PM-Kisan Sampada Yojana also support this ecosystem by encouraging transparent agreements and providing financial aid to food processing units.
Another success story is Dhawal Patel, a farmer from Banaskantha, exemplifies this success. Despite vowing never to farm after witnessing his father’s struggles, he embraced contract farming in 2017. Supplying to HyFun Foods, Dhawal’s profits have soared, reaching approximately Rs 50 lakh this year alone. He now earns roughly Rs 40,000 profit per bigha, a stark contrast to the Rs 30,000 per harvest his family once made. Dhawal has leveraged his increased earnings to purchase an additional 80 bigha of land and build a new house, sending his children to a private school. He highlights the stability, noting that companies now pay Rs 14 per kg compared to the Rs 5-6 per kg he used to get at the mandi, and farmers “know our profits even before harvesting”.
Infrastructure and Future Vision
The success is also underpinned by advancements in infrastructure. Processing plants like Iscon Balaji Foods and HyFun Foods are highly automated, with machines handling everything from quality scanning to heating and packing, reducing the need for extensive manual labour. Furthermore, the expansion of cold storage facilities has been critical. India now boasts about 8,600 cold storage facilities with a total capacity of 39.42 million metric tonnes, with approximately 75 per cent dedicated to horticultural produce, particularly potatoes. Gujarat alone contributes over 1,500 such facilities, concentrated in Banaskantha and Mehsana districts. These modern facilities offer better temperature control and hygiene standards, supporting the preservation of both raw potatoes and processed goods.
While Gujarat remains the processing hub, new centres are emerging in Punjab, Uttar Pradesh, West Bengal, and Madhya Pradesh, further linking farmers to domestic and export markets. Looking ahead, Dr RK Singh of CPRI envisions the potato becoming an “industrial crop,” with ongoing discussions about its use in ethanol production and as an energy crop. This potential diversification could further fuel industries, empower farmers, and position India at the forefront of the world’s food and energy future.
In essence, the “rebirth of the potato” in Gujarat signifies a profound agricultural and economic transformation, showcasing how scientific innovation, entrepreneurial vision, and farmer empowerment can collectively turn a humble crop into a global success story.
