How India's Potato Farmers Built a Global French Fry Export Industry

From Imported Fries to Exports Worth Rs 1,478.73 Crore

India exported more than 135,877 tonnes of frozen French fries worth Rs 1,478.73 crore, about $178 million, in 2023-24. Behind those shipments was a transformation stretching from the cotton fields of Gujarat to processing plants, refrigerated warehouses and restaurant kitchens in more than 40 countries.

In the early 1990s, India relied entirely on imported French fries. Once a niche luxury brought from Europe and the United States, the product has become an export business that links farmers with food manufacturers and overseas buyers. Over roughly two decades, India moved from being a net importer to a major supplier.

Annual imports peaked at 7,863 tonnes in 2010-11. By contrast, exports in the year to February 2024 reached 181,773 tonnes, an increase of 45% over the previous year. That volume exceeded India's annual domestic consumption of around 100,000 tonnes.

Gujarat sits at the centre of this change. Farmers there began growing potatoes selected for factories rather than household kitchens, while companies invested in processing equipment, agricultural support and storage. A potato's water, sugar and solid content became as important to its commercial value as the size of the harvest.

The business now reaches Southeast Asia, the Middle East and East Asia. Its expansion has brought more predictable purchasing arrangements to thousands of growers, while creating new demands for reliable electricity, refrigerated transport and consistent food quality. The next stage depends on keeping all those parts working together, from the seed planted in a field to the frozen fries delivered overseas.

Why Gujarat Farmers Moved Beyond Cotton

Jitesh Patel's family was among the farming households in Gujarat that traditionally grew cotton. Poor returns and recurring droughts in the early 2000s pushed them to reconsider what they planted. Seeking a crop that required less water, Patel and other growers turned to potatoes.

Their first attempts involved table potatoes, the kinds sold in local markets for cooking at home. Those crops brought little improvement in returns. The more substantial change came when food companies began establishing French fry processing plants in Gujarat and needed potatoes with particular qualities.

By 2007, Patel's family and others in the region had switched to potatoes intended for processing. Varieties including Santana, Innovator, Kufri Frysona and Lady Rosetta offered the high dry matter and low sugar content sought by processors. These qualities help factories produce crisp, golden fries that meet international specifications.

The change connected farming decisions to a specific buyer and product. Instead of growing potatoes solely for sale in local markets, farmers could produce a crop for a processing company's requirements. Better returns, more stable incomes and greater security encouraged thousands of growers to participate.

The industry's development can be traced through several milestones:

• Early 1990s: India relied entirely on imported French fries.
• Early 2000s: Poor cotton returns and recurring droughts encouraged Gujarat farmers, including Patel's family, to try potatoes.
• 2007: Patel's family and other growers had moved into potatoes intended for processing.
• 2010-11: Annual French fry imports peaked at 7,863 tonnes.
• 2023-24: Frozen French fry exports exceeded 135,877 tonnes, worth Rs 1,478.73 crore.
• 2024-25: Gujarat's production figures reflected the growing importance of potatoes for processing.

How Contract Farming Connects Fields and Factories

HyFun Foods, McCain Foods and Iscon Balaji Foods use contract farming to secure potatoes for their factories. Under these arrangements, companies agree prices with farmers in advance and provide quality seeds, technical support and guidance on cultivation.

Farmers gain a buyer and a clearer idea of what their crop will earn. Processors gain a dependable supply of potatoes grown to the quality they need. The arrangement ties agricultural advice directly to the requirements of the finished food.

An industry expert described the purchasing arrangements and the changes in cultivation:

The contract farming model ensures stable prices and assured procurement for farmers, who receive quality seeds and guidance on best practices. Innovations in planting methods have reduced input costs and improved yields.

Drip irrigation helps conserve water by delivering it where crops need it. Crop rotation supports soil health by changing what is grown in a field over successive seasons. Companies also introduce planting in two rows, a method intended to reduce the use of seed, fertilizer and water.

For growers, the benefits come from both sides of the farm budget: more dependable purchasing can support income, while more efficient cultivation can reduce costs. Higher yields make the relationship useful to processors too, because factories need large, regular supplies of suitable potatoes.

Gujarat Becomes the Processing Centre

Gujarat produced 48.58 lakh tonnes of processed potatoes in 2024-25, accounting for about a quarter of its total potato output. Banaskantha, Sabarkantha and Aravalli have become important centres for cultivating potatoes intended for processing.

Fertile soil, favourable climate and advanced farming systems have supported this concentration. Modern cold storage facilities allow potatoes to be kept throughout the year, helping factories maintain supplies beyond the harvesting season.

Lady Rosetta, Kufri Chipsona and Santana are among the varieties grown in the region. Their high dry matter and low sugar content are valued in potato processing, where the quality of the raw crop affects the colour and texture of the finished product.

Government policies, infrastructure investment and partnerships among farmers, agricultural businesses and technology providers have supported Gujarat's growth. The state's experience has become a model for other regions. Uttar Pradesh, West Bengal and Bihar also make substantial contributions to India's processed potato industry.

Gujarat's position brings several activities close together: cultivation, technical support, storage and manufacturing. That concentration helps explain why the transformation involves more than simply planting additional potatoes. The crop needs an organised route from the field to a factory capable of turning it into a product for domestic and international customers.

Where India's Fries Go and Why Buyers Choose Them

Indian French fries reach more than 40 countries. Major markets in Southeast Asia include the Philippines, Thailand, Malaysia, Indonesia and Vietnam. Saudi Arabia, the United Arab Emirates and Oman are important destinations in the Middle East, while Japan and Taiwan are among the markets in East Asia.

India has become the world's second largest French fry exporter, behind the United States and ahead of Belgium, a traditional leader in the sector. Its competitive position rests on manufacturing costs, access to raw potatoes and investment in processing quality.

Indian frozen fries are often cheaper than those from China and other competitors. Cost effective manufacturing and an abundant supply of raw material help processors compete on price, while potatoes selected for processing help them meet buyers' requirements for crispness and a light colour.

HyFun Foods operates some of Asia's largest potato processing plants, handling more than 1,000 tonnes of potatoes a day. Its product range includes straight cut fries, crinkle fries, peri-peri fries and coated varieties, reflecting different tastes across export markets.

Price alone is only one part of the business described by that product range. Manufacturers also invest in processing facilities, cold storage and logistics, while farmers adopt scientific cultivation methods and new varieties. Together, those investments allow factories to supply different products while maintaining the qualities customers expect.

What Makes a Potato Suitable for Fries?

A potato that works well in a household meal may perform poorly in a French fry factory. Table potatoes have high moisture and sugar content, which can lead to fries that turn brown and become soggy. Processing varieties are selected for a different balance.

Potatoes intended for processing contain about 20-23% dry matter and less than 0.1% reducing sugars. Dry matter is the solid material left when water is removed. A higher proportion helps factories recover more usable product during frying and achieve the desired texture. Keeping reducing sugars low helps control browning.

The Central Potato Research Institute in Shimla and companies such as Jain Irrigation Systems help develop and propagate suitable varieties. Their work supports a supply of planting material with the qualities processors require.

Tissue culture is one method used to multiply plants. Small pieces of plant tissue are grown under controlled conditions to produce plantlets free of viruses, which can then be multiplied for cultivation on a larger scale. The process allows many plants to be produced from selected material.

A leading agricultural scientist explained the role of this work in supplying the processing industry:

Tissue culture and meticulous breeding practices are essential for producing potatoes that meet the stringent requirements of the French fry industry. This ensures consistency, quality, and disease resistance.

Farmers and companies continue experimenting with varieties to address browning caused by sugar accumulation. They are also seeking better yields and greater resilience to climate stress. The practical goal is a crop that performs reliably in the field and retains the properties required when it reaches the factory.

Keeping Potatoes and Frozen Fries Moving

Cold storage and refrigerated transport remain major constraints on expansion. Only about 10-15% of India's cold storage facilities are suitable for frozen foods, and those facilities are concentrated in a limited number of states. Many regions have fewer options.

The industry needs storage at different stages of production. Farmers and processors must preserve the harvested potatoes that supply factories, while finished frozen products need a continuous system of suitable storage and transport to reach customers.

A shortage of specialised refrigerated trucks and containers makes transport under controlled temperatures more difficult and increases the risk of spoilage. Reliable electricity is also essential. Power outages in rural areas can interrupt processing and cold storage operations.

Leading exporters have developed efficient supply chains using export routes through Mundra and Ahmedabad. Compliance with export regulations, quality certifications and international food safety standards has become standard practice among major companies.

Further growth requires continued spending on infrastructure, technology and energy solutions. A factory can increase production only if enough suitable potatoes reach it and its finished products can continue through storage and transport without disruption.

What the Expansion Means for Rural Communities

HyFun Foods has expanded agricultural business operations such as HyFarm to support more than 7,000 farmers across 35,000 acres. Its plans aim to reach 30,000 farmers by 2028, extending the reach of company relationships with growers.

Contract farming and direct procurement have given thousands of smallholders access to technology, training and more stable incomes. Training covers efficient irrigation, soil management and crop rotation, connecting the purchasing relationship with changes in how farms operate.

Processing and exports add value to the crop after harvest. For rural communities, participation means supplying an industry that sells a manufactured food rather than relying solely on the local sale of raw potatoes.

The partnerships promote farming intended to remain profitable while conserving resources and coping with climate pressures. More stable purchasing arrangements and improved cultivation methods can help growers manage market fluctuations and environmental challenges.

HyFarm's expansion target also shows the scale of the next step. Moving from more than 7,000 participating farmers toward 30,000 requires agricultural support to grow alongside the business, so that processors receive suitable crops and farmers continue to receive the guidance built into the model.

Potato Rights Reach the Courts

PepsiCo's proprietary FL 2027 potato variety, used in Lay's chips, brought a different part of the processing industry into a legal dispute. In 2016, PepsiCo sued farmers in Gujarat over unauthorised cultivation of the variety.

The cases prompted a public backlash and debate over farmers' rights and intellectual property. Intellectual property rules give legal protection to particular innovations, while farmers' rights address what growers may do with planting material.

PepsiCo withdrew the lawsuits in 2019. The issue resurfaced in 2024 when the Delhi High Court reinstated the company's registration of FL 2027 under the Protection of Plant Varieties and Farmers' Rights Act.

The dispute concerned potatoes used for chips within the wider potato processing business. It brought attention to the need for clear policies balancing the development of new varieties, corporate interests and farmers' rights as commercial cultivation expands.

Growth Plans Extend Beyond French Fries

The worldwide French fry market was projected to grow from $17.45 billion in 2024 to $18.54 billion in 2025. India's market revenue was expected to reach $2.25 billion by 2034. Growing demand for convenience foods and foods ready to eat underpins those expectations.

India's opportunities include both domestic customers and overseas markets. Companies are also looking beyond fries to products such as hash browns, nuggets and potato flakes, widening the range of foods made from the crop.

The industry's investment priorities follow the needs already visible across the supply chain:

• Expand cold storage, refrigerated logistics and reliable energy supplies to support processing and exports throughout the year.
• Develop potato varieties, improve processing efficiency and adopt farming practices that conserve resources.
• Extend contract farming, training and access to technology for smallholders.
• Reach additional export markets and develop more products, including hash browns, nuggets and potato flakes.

India's change from an importer to a major exporter reflects the combined work of farmers, scientists, entrepreneurs and food companies. Gujarat's experience shows how a crop can gain new value when planting decisions, purchasing arrangements, processing technology and overseas demand develop together. Sustaining that growth requires investment across the same chain, including the farmers whose harvests supply it.

Key Points

• India exported more than 135,877 tonnes of frozen French fries worth Rs 1,478.73 crore in 2023-24.
• Exports in the year to February 2024 reached 181,773 tonnes, up 45%, exceeding annual domestic consumption of around 100,000 tonnes.
• Gujarat leads the processing industry, with Banaskantha, Sabarkantha and Aravalli among its main cultivation centres.
• Contract farming provides agreed prices, procurement, seeds and technical guidance to participating growers.
• Indian fries reach more than 40 countries, including major markets in Southeast Asia, the Middle East and East Asia.
• Only about 10-15% of India's cold storage facilities are suitable for frozen foods.
• HyFun's agricultural operations support more than 7,000 farmers across 35,000 acres, with plans to reach 30,000 farmers by 2028.
• Legal disputes over potato varieties have brought farmers' rights and intellectual property rules into focus.