See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/224771051

The Indian potato processing industry-Global

comparison and business prospects

Article in Outlook on agriculture September 2011

DOI: 10.5367/oa.2011.0057

CITATIONS READS

23 1,173

1 author:

Rajesh K. Rana
Indian Council of Agricultural Research
41 PUBLICATIONS 157 CITATIONS

SEE PROFILE

All in-text references underlined in blue are linked to publications on ResearchGate, Available from: Rajesh K. Rana
letting you access and read them immediately. Retrieved on: 07 September 2016
The Indian potato-
processing industry
Global comparison and
business prospects
Rajesh K. Rana

Abstract: India is the worlds third largest potato-producing nation, although its
potato-processing industry is still in its infancy. Per capita potato processing in
India during 200708 was just 365 g (89.69% potato chips, or crisps, 9.28%
potato powder/flakes and 1.03% French fries), using 1.475 kg potatoes per capita.
This performance compares poorly with that of the leading potato-processing
nations such as the UK, the USA, Canada, France and Germany. However, the
industry is experiencing rapid growth in India, and multinational corporations
(MNCs), such as PepsiCo, McCain and ITC, now have a conspicuous presence.
This paper provides detailed analysis of the consumption patterns of the processed
product in India relative to the world picture. The strengths, weaknesses and
business opportunities of this industry are also discussed.

Keywords: potato processing; global comparisons; business opportunities; India

Rajesh K. Rana is a Senior Scientist at the Central Potato Research Institute, Shimla 171001, HP,
India. E-mail: rkrana@icar.org.in.

The potato is the worlds fourth most important food crop
after rice, wheat and maize. India is the third largest
potato producer (24.61 million tonnes [mt] during the
triennium ending in 200607)1 after China (71.09 mt) and
Russia (37.55 mt). Domestic potato research and develop-
ment have been responsible for higher average potato
productivity in India than in China, Russia or Ukraine
(the country with the third largest potato area). India
produced 7.72% of the worlds potatoes from 7.57% of the
total global potato area and with a higher than world
average potato productivity.
Potato processing is a very important component of
agro-processing in India. Rapid urbanization and
improvements in living standards have led to phenomenal
growth in potato processing in recent years (Chengappa,
2004; Rana et al, 2004; Pandey and Sarkar, 2005; Pandey et
al, 2006; Rana et al, 2008, 2009a and 2009b). Easy availabil-
ity and convenient packaging are among the other reasons
for the popularity of processed potato products, even in
the far-flung rural areas of India.
In addition to established potato processors such as
Frito Lay India,2 Haldiram, McCain Foods India,3 Golden
Fries and Balaji Wafers, new players, including ITC,4 Gee
Pee Foods, Merino Industries Ltd, Satnam Agri Industries,
Little Bee Impex and Vimal Oil & Foods Ltd have also
entered the arena (Rana and Pandey, 2007). Small and
regional players have a very high collective share in
Indian potato processing. The raw material requirement
for manufacturing potato products during 200708 and
201011 is estimated at 6.8% and 10.9% respectively of the
national potato production during 200607.
Potato utilization patterns
About 68.5% (16.9 mt) of the potato output, equivalent to
14.9 kg per capita,5 goes to domestic table consumption
that is, largely as the unprocessed vegetable (Rana, 2009).
As the majority of the countrys geographical area lies
under the tropics and sub-tropics, the post-harvest losses
due to high temperatures are quite large, at 12.5%. More
than one-eighth of potato production is retained as seed
for the next year s crop. About 7% of the national potato
production was used by the processing industry during
200708. Out of the countrys per capita annual potato
production of about 21.5 kg, the consumption of
processed quality potatoes was only 1.5 kg. In India
potatoes are not generally fed to animals.

Outlook on AGRICULTURE Vol 40, No 3, 2011, pp 237243 doi: 10.5367/oa.2011.0057 237

The Indian potato-processing industry
Potato processing
The potato-processing industry in India can be split into
the organized and unorganized sectors. The organized
sector is under the control of the large manufacturers,
operating to corporate standards and enjoying a wide
presence, while the unorganized sector comprises small
manufacturers with lesser-known or no brand names,
producing for local markets. French fries, Alu Bhujia and
potato flakes/flour are manufactured in the organized
sector, while potato chips are made by both categories of
manufacturers. Dehydrated potato products such as
potato chips, potato shreds and other products using
potatoes as full or partial content are generally manufac-
tured as a cottage industry or on a home scale within the
unorganized sector. Alu Bhujia is a fine, fried, salty, crispy
and short noodle-shaped snack, with only 35% of the
product in the form of potato flakes/powder.
About 60% of potato processing in India takes place in
the unorganized sector (Rana and Pandey, 2007), which is
growing at the same rate as the organized sector. Surveys
have been carried out to assess the market share and
consumption pattern of different processed potato prod-
ucts manufactured by the unorganized sector (Jame et al,
2001; Rani and Ezekiel, 2001; Das and Ezekiel, 2001; Verma
et al, 2001; Kumar et al, 2002), and have shown that potato
chips were the most common product manufactured.
Although some quality and packaging concerns were
found, the products were affordable by, and available to
the economically weaker sections of society.
The per capita consumption of potato products in India
was 365 g in the year 200708 and is expected to be 562 g
in 201011 (Rana and Pandey, 2007). This per capita
annual consumption compares very poorly with the
leading potato-processing nations the UK (45.6 kg), the
USA (37.0 kg), Canada (35.8 kg), France (34.2 kg) and
Germany (30.4 kg) (see Table 1). Current Indian potato
products are potato chips or crisps as they are known in
some countries (89.69%), potato powder/flakes (9.28%)
and French fries (1.03%). Worldwide during 2006, pre-fries
had the highest share of the potato product market
(64.68%), followed by potato chips (14.43%), potato
powder/flakes (14.19%) and other potato products (6.70%).
The quantity of potato tubers used for processing in 2006
Table 1. Potato processing details for India compared to other countries (all products).
Country/region Raw material
(thousand t) % to productionb
USA (2006) 12,640 64.12
Canada (2006) 2,750 54.02
Netherlands (2006) 3,115 49.92
Germany (2006) 3,047 30.38
Belgium (2006) 2,184 84.23
UK (2006) 1,822 31.81
France (2006) 1,215 19.12
China (200607) 5,250 7.46
Indiaa (200708) 1,682 6.83
World (2006) 43,000 13.65
Notes: NA = not available; aIncludes manually produced potato chips in the unorganized sector; bBased on FAO production data for
2006, except for India data for 200708 (DES, 2009); cAssuming 15% animal feed (Scott et al, 2000), 8% seed (Scott et al, 2000), 14%
processing (Keijbets, 2008), 9% other uses (Scott et al, 2000), and 54% fresh (residual stock) as the worlds potato consumption.
Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.
238
was highest in the USA (12.64 mt), followed by the
Netherlands (3.12 mt), Germany (3.05 mt), Canada (2.75
mt) and Belgium (2.18 mt), against Indias 1.68 mt in 2007
08. With these amounts, the quantity of potato used for
processing in the USA was 4.84 mt, followed by the
Netherlands (1.66 mt), Canada (1.41 mt) and Belgium (1.15
mt) (Keijbets, 2008; Van Eijck, 2009). In India, the figure
was 0.42 mt during 200708 (Rana and Pandey, 2007).
Potato chips
Over the last two decades, potato chip manufacturing
companies such as Frito Lay India have put considerable
effort into the popularization of this product in India. This
has led to fast incremental growth in potato chip manu-
facturing capacities. The production of potato chips in
India was estimated to be 0.38 mt in 200607 and was
expected to increase to 0.59 mt in 201011 (Rana and
Pandey, 2007). Indian figures for 2006 compare well with
production levels of leading countries like the USA (0.76
mt) and the UK (0.18 mt) (Table 2). The requirement for
processing quality potatoes for potato chips in the USA
during 2006 was 3.04 mt, compared with an Indian
requirement of 1.51 mt during 200708. However, the per
capita annual consumption of potato chips in India (0.33
kg in 200708) is much lower than in the USA (7.30 kg in
2006). In the UK the annual potato chip consumption per
capita stood at 12.3 kg, in Canada at 11.2 kg, in France at
5.2 kg and in Germany at 4.6 kg, all of which are very
much higher than in India (Keijbets, 2008).
MNCs are very important players in Indian potato chip
manufacturing. Frito Lay India and ITC retained a 29.98%
share of the potato chip market during 200506. This
proportion increased to 30.83% in 200708 and was further
expected to reach 31.55% during 201011 (Rana and
Pandey, 2007). Although MNCs have increased their
production, their market share has been restricted by the
increased competition from existing and new domestic
players who are showing encouraging growth.
French fries
French fries are a comparatively new potato product for
Indian markets. The Indian subsidiary of the worlds
largest French fries company, McCain, is doing much to
Product (thousand t) Per capita annual (kg)
Processed Fresh
4,838 37.0 19.1
1,410 35.8 29.8
1,660 NA NA
991 30.4 NA
1,148 17.4 36.8
772 45.6 48.8
592 34.2 NA
782 0.602 15.6
416 0.365 14.8
16,500 2.75 28.4c
Outlook on AGRICULTURE Vol 40, No 3
 The Indian potato-processing industry

Table 2. Potato processing details for India compared to other Table 3. Potato processing details of India compared to other
countries (potato chips). countries (pre-fries).

Country/region Raw material Product Per capita Country/region Raw material Product Per capita
(thousand t) (thousand t) annual (kg) (thousand t) (thousand t) annual (kg)
USA (2006) 3,040 760 7.3 USA (2006) 6,990 3,678 23.9
Canada (2006) NA NA 11.2 Canada (2006) 2,600 1,410 13.0
Germany (2006) 380 95 4.6 Netherlands (2006) 2,461 1,294 16.0
UK (2006) 702 175 12.3 Germany (2006) 865 455 10.5
France (2006) 74 36 5.2 Belgium (2006) 1,668 834 14.4
China (200607) 232 58 0.04 UK (2006) 1,105 582 29.1
India (200708) a 1,508 377 0.331 France (2006) 792 447 18.0
China (200607) 222 113 0.09
Notes: NA = not available; aIncludes manually produced potato India (200708) 17.4 7.8 0.007
chips in the unorganized sector, which are not included in the
case of China and other countries. Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004;
Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.
Dongyu et al, 2004; Rana and Pandey, 2007.

popularize the product. McCain India established a frozen for 201011 of 21,332 t. Per capita annual consumption of
potato product factory near Mehsana (Gujarat) during French fries in 2006 was 29.1 kg in the UK, followed by
2006 with an annual capacity of 40,000 t. With this devel- 23.9 kg in the USA, 18 kg in France and 16 kg in the
opment, the annual French fries manufacturing capacity Netherlands (Keijbets, 2008), compared with 7 g in India
in India has reached 54,600 t. McCain Foods India, which (Rana and Pandey, 2007).
had an 86.21% share in the frozen potato products market Potato flakes/flour
in India during 200708, is expected to have a 94.94%
market share during 201011 (Rana and Pandey, 2007). As far as potato flakes/flour are concerned, Potato King
The rapid gain in McCains market share is in part a has been the leading player, followed by Merino
reflection of the dismal performance of domestic Industries Ltd. However, Merino Industries Ltd is per-
processors in this field. However, the consumption of forming better with regard to quality and value addition
potatoes for manufacturing this product was near 0.6% of by providing world-class ready-to-use products and
average potato production during the three years ending product mixtures. Satnam Agri is another significant
in 200607 (Rana and Pandey, 2007). player in this segment of potato processing. But many
The main reasons for the low utilization by French fries new, smaller players are constantly entering this market
plants are the limited outlets serving the product and its sector. The potato flakes/powder industry in India con-
high price. Utilization of French fries production capacity sumed more than 0.6% of the 24.61 mt (average potato
in India during 200607 was just 14.28%. As additional production of the three years ending 200607) in 200607.
new capacity is not expected to be on stream in the near This figure is expected to be greater than 1% in 201011.
future, the capacity utilization during 201011 is expected The capacity utilization in this area of potato processing is
to be 39%. The retail prices of French fries in India are expected to increase to nearly 33% during 201011 from
quite high. The price of 1520 individual fries in the usual just 20% in 200708, if we assume no new additional
outlets is US$0.631.25. Shortage and the high cost of cold capacity. The country had 156,000 t of annual potato
chain storage are the most important determinants of the flakes/powder manufacturing capacity in 200708. MNCs
high retail price. do not manufacture potato flakes/powder in India.
The number of MNC quick service restaurants (QSRs) Per capita consumption of this product in the country
serving pre-frozen French fries and other frozen potato in 200708 was just 27 g, which is expected to increase to
products in India is increasing rapidly. At present, 43 g during 201011. However, in countries like Germany
McDonalds and Kentucky Fried Chicken have 170 and 70 the annual consumption of dehydrated potato products in
outlets respectively. Some domestic chains of restaurants
also serve French fries. These QSRs are increasing at an
annual compound growth rate (ACGR) of 40%, reflecting
the equally fast growth in the demand for frozen potato Table 4. Potato processing details for India compared with other
products, including French fries. countries (dehydrated products).
The contribution of French fries to world potato
processing in 2006 was 64.68%; however, this share in Country/region Raw material Product Per capita
India was just 1.03%. The USA used 6.99 mt potatoes in (thousand t) (thousand t) annual (kg)
the French fries industry during 2006, followed by Canada USA (2006) 2,480 400 5.4
(2.60 mt), the Netherlands (2.46 mt), Belgium (1.67 mt) Germany (2006) 1,302 210 15.7
and the UK (1.11 mt) (Table 3). In India, this quantity was France (2006) 215 47 6.1
just 0.02 mt during 200708. In the USA, French fries China (200607) 185 36 0.028
India (200708) 156 31 0.027
production in 2006 amounted to 3.68 mt, followed by
Canada (1.41 mt) and the Netherlands (1.29 mt). In India, Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004;
the quantity was 7,795 t during 200708, with a forecast Dongyu et al, 2004; Rana and Pandey, 2007.

Outlook on AGRICULTURE Vol 40, No 3 239

The Indian potato-processing industry
Table 5. Potato processing details for India compared with other
countries (starch).
Country/region Raw material Product Per capita
(thousand t) (thousand t) annual (kg)
EU-27 (2005) 8,000+ 1,100 NA
China (200607) 4,610 575 0.42
India (200708) Nil Nil NA
Note: NA = not available.
Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004;
Dongyu et al, 2004; and Rana and Pandey, 2007.
2006 was 15.7 kg, followed by France (6.1 kg) and the USA
(5.4 kg) (Table 4). The total quantity of dehydrated potato
products manufactured in the USA and Germany in 2006
was 400,000 and 210,000 t respectively, compared with
31,000 t for Indias production of flakes/powder in 2007
08. The quantities of potatoes fed into this industry in the
USA and Germany were 2.48 and 1.3 mt respectively,
compared with 0.16 mt in India.
Potato starch
The potato starch manufacturing industry is almost non-
existent in India, as no starch manufacturing takes place
in the organized sector (Rana and Pandey, 2007). Ezekiel
and Shekhawat (2002) and Kaur and Ghuman (2003) have
emphasized the need for and potential of potato manufac-
turing in India. However, in a survey of starch importers
in Mumbai by this author in March 2006, it was found that
imported potato starch from Europe and China was too
cheap to allow an Indian starch industry to become
established. The situation has not changed. However,
imported coarse starch is refined in the country and re-
exported to different countries. Refining starch is a
profitable business. The value of potato can be increased
by 30% by processing it into coarse starch with conven-
tional methods, though this value can be increased
threefold if the potato starch is processed with lactic acid
using state-of-the-art technologies; eight times if it is
modified into water-absorbent resin; nearly 20 times if
processed into cyclodextrin; or even 30 times if processed
into fine chemical products (Wenxiu et al, 2004). The
European Union and China are the most important potato
starch manufacturers (Table 5).
Strengths
Among the key strengths of the Indian potato-processing
industry are (a) the availability of indigenous potato-
processing varieties best suited to the local and varied
agro-climatic conditions for round-the-year supply of
processing-quality potatoes, and (b) the rapid adoption by
farmers of the industrys latest trends and practices, such
as contract farming, crop insurance and international
cultivation standards (such as Eurepgap) (Rana, 2009).
Indigenous processing varieties
India, so far, has 47 indigenous potato varieties, nine of
which are either processing varieties or suitable for
processing.6 The potato varieties released up to 1997
generally had low tuber dry matter (1819%) and high
240
reducing sugars (above 250 mg/100 g tuber weight), and
therefore were not suitable for processing. Only three of
the table-purpose varieties Kufri Chandramukhi, Kufri
Jyoti and Kufri Lauvkar were found to be suitable for
the chipping industry. Singh et al (2003a, 2003b) found
Indian processing varieties of potato highly suitable for
processing and better than exotic varieties in many
attributes.
Suitability of producing areas
Just as every potato variety is not suitable for processing,
nor is every area suitable for producing processing-
quality potato. On the basis of the mean temperature of 30
years for various places, areas have been divided into
three categories least suitable, suitable and most suitable
for producing processing-quality potatoes (Ezekiel et al,
1999, 2007). Most parts of Jammu Kashmir, Himachal
Pradesh, Uttar Pradesh, Madhya Pradesh, Gujarat and the
North Eastern hill states were found to be suitable, while
the entire plateau region, most of the North Eastern plains
and parts of Rajasthan, Orissa and Madhya Pradesh are
most suitable for producing processing-quality potatoes.
Overall, many states across the diverse agro-climatic
regions allow the production of processing-quality
potatoes in all seasons.
Contract farming and other risk management
techniques
Contract farming has been an important component of the
business model for major potato processors in India
(Chakravarty and Pandey, 2005). The concept is steadily
gaining popularity, as farmers are increasingly realizing
that contract farming can reduce the risk associated with
excessive price volatility of farm products. Contract
farming is a common practice for the potato crop, mainly
for seed and processing-quality potato production. Frito
Lay is the largest company involved in potato contract
farming, having an immense presence in Punjab, West
Bengal, Maharashtra and Karnataka states. The company
also has potato contract farming operations in more or
less all major states producing processing-quality
potatoes. Besides Frito Lay (chips), ITC (chips), McCain
Foods India (French fries and other frozen products),
Haldiram (chips), Balaji Wafers (chips), Merino Industries
Ltd (potato flakes and other dehydrated products),
Technico (formerly Chambal Agritech, a seed-potato
company) and Satnam Agri Industries (French fries and
potato flakes) are also involved in the contract farming of
potatoes in various states.
Besides contract farming, increasing numbers of potato
farmers are adopting other risk management techniques,
such as crop insurance and futures trading.
Micro-irrigation
Many potato farmers, particularly in Gujarat, have
adopted drip and sprinkler irrigation techniques.
Although sprinkler irrigation has not been very
successful because of an associated increase in late
blight infestation, drip irrigation has been a particular
success among potato farmers. The unpublished results
of a survey conducted by the author during February
2009 indicate about a 30% yield increase after drip
irrigation in Gujarat. The late blight infestation on drip-
Outlook on AGRICULTURE Vol 40, No 3

irrigated farms was below 5%, against 40% on the
furrow-irrigated ones. Drip irrigation led to 12% more
dry matter, better distribution of dry matter, less greening
of tubers and remarkable improvement in the appearance
of potato tubers, with the result that the production on
drip-irrigated farms yielded a 25% higher price in the
market. 2009 was a severe late blight year, and the
overall gross returns per unit area on drip-irrigated farms
was nearly 100% higher than on the furrow-irrigated
farms.
Cheap labour
Farm labour is very cheap in India. In 2009 a Gujarat
female labourer was paid slightly less than one US dollar
a day for potato cultivation operations, while her male
counterpart received a maximum of US$1.5 a day. Even in
states such as Punjab, where farm labour is costliest, a
woman labourer earned daily wages of around US$1.5
and a man US$2.1 a day for potato cultivation activities.
Cheap labour offers an excellent opportunity to produce
cheaper potatoes in the country.
Favourable location for exports
India is a suitable location for exporting processed potato
products like French fries and potato flakes to the Middle
East, Mauritius, the Maldives, Sri Lanka, Malaysia,
Singapore, etc (Khurana and Rana, 2004).
Weaknesses
Traditional food habits
A very large proportion of the population in India still
thinks that processed food is unhealthy and a source of
ailments. However, with the increasing number of
working women, higher disposable income and a Western
influence on young Indians, the number of potato product
eaters is increasing very rapidly.
High transportation cost
The cost of land transportation of goods in India is high.
Currently, Indian railways have a very low priority for
potato transportation. However, substantial planned
expenditure on dedicated rail freight corridors and
express highways across the country is likely to bring a
permanent solution to this problem.
Costly cold chain
In tropical countries, the unit cost of cold chain facilities is
many times that in temperate zones, and the shortage of
these facilities in India makes the service still costlier.
However, with the anticipated focus on road infra-
structure and increasing economies of scale, one can
expect much cheaper and more easily available cold chain
facilities in the near future.
Small operational holdings
Except for the state of Punjab, the potato farmers hold-
ings in India are small. This creates problems in contract
farming and with farm advisory operations and services.
Short days
About 90% of potato production in India takes place
Outlook on AGRICULTURE Vol 40, No 3
The Indian potato-processing industry
under short day conditions during mid-October and mid-
March. Crop duration under these conditions is less than
110 days: hence the requirement for producing French
fries greater than five inches in length is constrained.
Business opportunities
Domestic demand
The annual compound growth rates of demand for potato
chips, Alu Bhujia and French fries in India were estimated
to be of the order of 30%, 50% and 30% respectively (Rana
et al, 2009b). The target of growing just 10 kg per capita of
potatoes per year for processing that is, 2.5 kg per capita
of potato products creates a growth opportunity of
578%. The current annual consumption of potato tubers
for processing in the country is 1.475 kg per capita that
is, 365 g of product per capita.
Idle potato-processing plants
Encouraged by the high business potential, many entre-
preneurs have entered the potato-processing business.
However, due to their lack of experience in the field, a
poor understanding of business dynamics and a loss of
focus on the business, many state-of-the-art potato
processing facilities in India are lying idle. This situation
is much more common in relation to French fries and
potato flakes/powder manufacturing. Taking into consid-
eration that developed nations are gradually reducing
potato farming, it is very likely that in the future proc-
essed potato products will be sourced from developing
nations. Plants are lying idle just because of a shortage of
demand and they could provide lucrative business
opportunities via take-over or contract manufacturing
under buy-back arrangements. MNCs have successfully
taken over7 potato-processing businesses in the past.
Demand of non-resident Indians
Millions of Indians now reside in various countries
worldwide but retain a strong desire for traditional Indian
snacks. Currently, Haldiram Foods is unable to meet the
export demand for Alu Bhujia for non-resident Indians.
PepsiCo developed Kurkure, a new product with a typical
Indian taste: it is now a great success and has been
launched worldwide. There are countless other possibili-
ties in this area of business.
Export of potato products versus potatoes
At present India exports a sizeable quantity of processing-
quality potato to Mauritius and Middle Eastern countries.
Instead of exporting processing-quality potatoes, the
export of frozen products and potato flakes/powder to
these and other nearby countries would make much better
business sense.
Miscellaneous opportunities
Indian companies and entrepreneurs have limited or no
experience of running cold chain operations, so this will
be an important business area in the coming future. Crop
insurance is another area which is new to Indian
companies. The government is providing much support to
make crop insurance available to the maximum number of
farmers. Some Indian companies and MNCs have started
241
The Indian potato-processing industry
to provide integrated solutions for whole farm needs and
problems, and this area would seem to have great
business potential.
Acknowledgments
Some of the contents of this paper were poster-presented
at the 15th Triennial Symposium of the International
Society for Tropical Root Crops, jointly organized by CIP
and ISTRC in Lima, Peru, on 26 November 2009. Nothing
from the paper was published in proceedings or in any
other form by the conference organizers.
Notes
1
Averages for the three-year period ending in 200708 were not
used for calculations, as potato production in India during
200708 was abnormally high at 28.47 mt (DES, 2009).
2
Frito Lay (PepsiCo) followed by McCain Foods India Ltd and
ITC are important MNCs working in the field of potato
processing. Frito Lay, a world leader in potato chip manufactur-
ing and selling, is well established in India. Frito Lay India
operates three plants at full capacity in Channo (the district of
Sangarur in Punjab), Sankarail (the district of Howara in West
Bengal) and Pune (Maharashtra). Frito Lay Indias plants have
an annual processing capacity of 30,000 to 40,000 t. The
company is seeking a location for its fourth plant.
3
McCain, another world leader in frozen potato products in
general and French fries in particular, is not only a leading
player in India, but enjoys the status of near monopoly in this
business in India. The companys 40,000 t annual capacity plant
near Mehsana (Gujarat) runs at full capacity, and McCain is
searching for a suitable location for its second plant.
4
ITC is a comparatively new entrant in the field of potato
processing. The company has two potato chip manufacturing
plants in India one at Haridwar (Uttarakhand) and a second
at Pune (Maharashtra). It successfully gained a sizeable market
share (11%) in a very short period of time after launching its
products.
5
The projected population of India (source: www.censusindia.
gov.in) was 1,114.20 million in 2007.
6
Kufri Jyoti, K. Lauvkar and K. Chadramukhi were the Indian
table potato varieties found suitable for processing. K.
Chipsona-1, K. Chipsona-2, K. Chipsona-3, K. Surya, K.
Himsona and K. Frysona are the Indian processing varieties of
potato. In addition to these Indian varieties, McCain Foods
India Ltd and PepsiCo are undertaking contract farming of
exotic potato varieties. Shepody, Kennebec, Santana and
Innovator are varieties especially favoured by McCain, while
PepsiCo prefers Atlantic, Frito Lay collections and Lady
Rosseta among the exotic potato varieties.
7
Uncle Chips, the earliest known potato chip company in India,
was taken over by Frito Lay India Ltd. Among other important
takeovers, Chambal Agritech is now part of Technico, an
important seed potato production and marketing company in
India now under the control of ITC and an important seed
potato supplier for the contract farming operations of the
company.
References
Chakravarty, C., and Pandey, B. (2005), Growing roots in farm-
lands (an interview with Ms Indra Nooyi, Worldwide President
and CFO, PepsiCo), The Economic Times, 29 August.
Chengappa, P. G. (2004), Emerging trends in agro-processing in
India, Indian Journal of Agricultural Economics, Vol 59, No 1, pp
5574.
Das, M., and Ezekiel, R. (2001), A market survey of the processed
potato products in greater Kolkata, Journal of the Indian Potato
Association, Vol 28, No 1, pp 164166.
242
DES (2009), Potato Area, Production and Productivity Statistics,
200708, Directorate of Economics and Statistics, Ministry of
Agriculture, Government of India, New Delhi.
Dongyu, Q., Kaiyun, X., Liping, J., Chunsong, B., and Shaoguang,
D. (2004), Development of potato industry and technology
needs in China, in Proceedings: 5th World Potato Congress, China,
pp 8789.
Ezekiel, R., and Shekhawat, G. S. (2002), Potato processing in
developing countries with special reference to India, in
Khurana, S. M. P., Shekhawat, G. S., Pandey, S. K., and Singh, B.
P., eds, POTATO: Global Research and Development, Vol 2, Indian
Potato Association, Shimla, pp 10101020.
Ezekiel, R., Singh, B., and Pandey, S. K. (2007), Alu Vidhayan
Margdarshika (in Hindi), Technical Bulletin, No 48 (Revised),
Central Potato Research Institute, Shimla.
Ezekiel, R., Verma, S. C., Sukumaran, N. P., and Shekhawat, G. S.
(1999), A guide to potato processors in India, Technical Bulletin,
No 48, Central Potato Research Institute, Shimla.
Jame, K., Kumar, D., and Ezekiel, R. (2001), Market status of
different processed potato products in Meerut, Ghaziabad and
Delhi, Journal of the Indian Potato Association, Vol 28, No 1, pp
169171.
Kaur, P., and Ghuman, B. S. (2003), By-product utilization for
enhancing profitability of a potato processing plant, Journal of
Research, Punjab Agricultural University, Ludhiana, Punjab, Vol
40, No 1, pp 7178.
Keijbets, M. J. H. (2008), Potato processing for the consumer:
developments and future challenges, Potato Research, Vol 51,
No 3, pp 271281.
Khurana, S. M. P., and Rana, R. K. (2004), Need for initiatives,
The Hindu Survey of Indian Agriculture, Kasturi and Sons Ltd.,
Chennai, pp 4951.
Kumar, N. R., Dahiya, P. S., Rambir, and Sharma, H. C. (2002),
Consumption pattern of potato and its products in Meerut
city, in Khurana, S.M. Paul, Shekhawat, G. S., Pandey, S. K.,
and Singh, B. P., eds, POTATO: Global Research and Development,
Vol 2, Indian Potato Association, Shimla, pp 12031206.
Pandey, S. K., and Sarkar, D. (2005), Potato in India: emerging
trends and challenges in the new millennium, Potato Journal,
Vol 32, Nos 34, pp 93104.
Pandey, S. K., Sarkar, D., and Singh, S. V. (2006), Potato process-
ing in India: today and tomorrow, Potato Journal, Vol 33, Nos
12, pp 1119.
Rana, Rajesh K. (2009), Crucial position of Punjab in Indian
potato processing industry, Indian Journal of Agricultural
Marketing, Communicated.
Rana, Rajesh K., Minhas, J. S., and Khurana, S. M. Paul. (2004),
Processing sector set for rapid expansion, European Potato
Markets (Monthly), No 108, pp 4142.
Rana, Rajesh K., Pandey, N. K., Pandit, A., and Kumar, N. R.
(2008), Brand-wise expenditure estimates of processed potato
products in Punjab, Indian Journal of Agricultural Marketing, Vol
22, No 2, pp 196205.
Rana, Rajesh K., Pandey, N. K., Pandit, A., and Kumar, N. R.
(2009a), Estimation of demand of processed potato products
and processing quality potato in Punjab, Indian Journal of
Agricultural Economics, Vol 64, No 1, pp 123132.
Rana, Rajesh K., and Pandey, S. K. (2007), Processing quality
potatoes in India: an analysis of industrys demand, Processed
Food Industry, Vol 10, No 8, pp 2635.
Rana, Rajesh K., Pandit, A., and Pandey, N. K. (2009b), Demand
of processed potato products and processing quality potato in
India, Potato Research, Communicated.
Rani, M., and Ezekiel, R. (2001), Potato processing in unorgan-
ised sector and quality of potato chips available in the market,
Journal of the Indian Potato Association, Vol 28, No 1, pp 159161.
Sanchez, J., Junyang, J., and Han, A. (2007), Frozen Potato Products,
Gain Report No CH7073, USDA Foreign Agricultural Service,
Washington, DC, pp 114.
Scott, G. J., Coccia, A., and Walker, T. (2000), Developments in the
international potato industry, World Potato Congress, Nether-
lands.
Singh, S. V., Kumar, D., and Pandey, S. K. (2003a), Yield and
Outlook on AGRICULTURE Vol 40, No 3

processing attributes of indigenous and exotic potato varieties
for processing in late-planted crop in NW Plains, Journal of the
Indian Potato Association, Vol 30, Nos 34, pp 253258.
Singh, S. V., Pandey, S. K., Kumar, D., Patel, N. H., and Khurana,
S. M. Paul (2003b), Performance of potato varieties/hybrids for
French fries in North Gujarat, Journal of the Indian Potato
Association, Vol 30, Nos 12, pp 1516.
Van Eijck, P. (2009), Impacting global trends and developments in
the potato processing industry, PotatoPro Newsletter, 20 July,
Outlook on AGRICULTURE Vol 40, No 3
The Indian potato-processing industry
website: http://www.potatopro.com/newsletters/20090720.htm.
Verma, V., Singh, L., and Singh, R. (2001), Consumption
behaviour of potato products in rural and urban areas of
Meerut district, Journal of the Indian Potato Association, Vol 28,
No 1, pp 178179.
Wenxiu, L., Shujun, L., Jianjun, P., Kaoqun, X., Fengmin, Z.,
Yanchen, Y., and Gang, W. (2004), The current status of potato
processing sector in China and the way out for future develop-
ment, Proceedings: 5th World Potato Congress, China, pp 116119.
243