India’s Processed Potato Exports Gain Strong Foothold in Southeast Asia: GTRI
NEW DELHI: India’s processed potato exports are rapidly expanding across Southeast Asian markets, fuelled by growing snack consumption and robust infrastructure development in key producing states such as Gujarat and Uttar Pradesh, according to a report released on Thursday.
The Global Trade Research Initiative (GTRI) said exports of dehydrated potato granules and pellets surged from USD 11.4 million in 2021-22 to USD 63.3 million in 2024-25, making them the fastest-growing segment in India’s processed food exports.
Other processed potato products—including flour, starch, chips, and ready-to-eat snacks—also recorded healthy gains, with exports rising from USD 6.2 million to USD 18.8 million over the same period.
“Nearly 80 per cent of India’s processed potato exports go to Malaysia, the Philippines, Indonesia, Japan, and Thailand, underscoring the country’s deepening integration into Southeast Asia’s snack and convenience food supply chains,” said Ajay Srivastava, Founder of GTRI.
He noted that states like Gujarat and Uttar Pradesh are spearheading the sector’s growth through new dehydration facilities, contract farming initiatives, and cold-chain infrastructure, backed by India’s 56-million-tonne annual potato output.
With Europe grappling with high energy costs and unstable harvests, and China focusing on domestic needs, India has emerged as a reliable, low-cost, year-round supplier for Asia’s snack and quick-service restaurant (QSR) industries, Srivastava added.
Malaysia remains India’s largest market for dehydrated potato granules and pellets, with imports rising from USD 5.1 million to USD 22.1 million, followed by the Philippines and Indonesia, while Japan and Thailand have also ramped up purchases. Together, these five destinations account for nearly four-fifths of India’s total exports in this category.
Preferential tariffs under the India-ASEAN Trade in Goods Agreement and short shipping routes through ports such as Mundra, Kandla, and Chennai have further boosted India’s price competitiveness, the report said.
On the supply side, Gujarat’s Mehsana and Banaskantha districts have become key processing hubs, housing modern dehydration plants supported by contract farming and cold storage networks. New facilities are also coming up in Agra and Farrukhabad in Uttar Pradesh.
GTRI highlighted that with Europe’s processors hit by energy shocks and China scaling back exports, global buyers are increasingly turning to India.
“India’s consistent output, improving quality standards, and cost advantage have transformed it from an occasional exporter into a dependable, year-round supplier for Asia’s food manufacturing industry,” Srivastava said.
