Fresh potato exports will continue to remain important for India, but the country’s biggest long-term opportunity lies in value addition and processing, says Praj Thakker of Indian table and chips potato exporter SK Group. Although India is the world’s second-largest potato producer, fresh exports continue to be driven largely by temporary market opportunities rather than long-term structural competitiveness.
According to Praj, “India produces around 60 million tonnes of potatoes annually from approximately 2.3 million hectares. Despite this scale, exports account for only around 600,000 tonnes, as domestic consumption absorbs the overwhelming majority of production.”
© SK Group
India’s fresh potato exports primarily serve neighbouring and regional markets including Nepal, Sri Lanka, the UAE, Oman, Qatar and Malaysia. However, export volumes fluctuate depending on market conditions rather than fixed programmes.
“Our exports remain opportunistic. Whenever neighbouring countries face production shortages, or pricing becomes favourable, Indian potatoes become competitive. But unlike countries such as Egypt or China, we’re not consistently supplying the same export markets year after year.”
Praj highlights how competing origins enjoy structural advantages that are difficult to replicate. “Egypt has a logistical advantage into Europe, while China has both scale and lower production costs. India has the production capacity, but because domestic demand is so strong, exporters often have limited volumes available for overseas markets.”
© SK Group
The domestic market has once again underpinned the industry this season. Production remained broadly stable, while healthy local demand kept farm-gate prices firm throughout the marketing year. “We haven’t witnessed the kind of severe price corrections that growers sometimes experience. Domestic consumption has continued absorbing most of the crop, providing stability to growers.”
Where Praj sees the industry’s biggest transformation, however, is processing. “India’s potato processing industry currently consumes around 3 million tonnes annually. Over the next decade, we expect this to increase to nearly 8 million tonnes, driven by growing demand for frozen fries, potato chips, flakes and other processed products.”
The expansion is already influencing production practices. “Processing varieties require high dry matter, low sugar levels and greater uniformity, encouraging growers to adopt more specialised cultivation methods and contract farming models. Growers also benefit from greater certainty because production is aligned to specific industry requirements. As investment continues, we expect more acreage to shift towards varieties developed specifically for processing.”
© SK Group
The shift towards processing is also reflected in SK Group’s own expansion. The company has recently invested in a dedicated potato processing facility under the name 3 Brothers Agri Exports, with an initial focus on manufacturing premium-quality potato flakes for applications ranging from snacks and bakery products to soups and ready-to-eat foods.
Despite this transition, Praj believes fresh potatoes will continue to play an important role in India’s overseas trade. “Commodity exports will always remain relevant whenever international market opportunities arise. But the larger long-term opportunity lies in value addition, where India can create significantly greater value from the same production base,” he concludes.
For more information:
Praj Thakker
S K Group
Tel : +91 99 25 200 387
Email: [email protected]
www.skagriexports.com
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.