India’s Processed Potato Exports Surge as Asia’s Snack Demand Booms

 India’s exports of processed potato products are rising sharply, signalling the country’s growing foothold in Asia’s fast-expanding snack and convenience food supply chain. Most of the export turnover comes from dehydrated potato granules and pellets, with additional growth coming from products such as potato flour, starch, chips, and ready-to-eat potatoes.

India’s exports of dehydrated potato granules and pellets have jumped from $11.4 million in 2021-22 to $63.3 million in 2024-25,  a surge of more than five times in just three years. The rise reflects robust demand from Southeast and East Asia, where food manufacturers are scaling up production of instant noodles, snack foods, and quick-service restaurant items.

Malaysia is India’s largest buyer, with imports climbing from $5.1 million to $22.1 million, followed by the Philippines and Indonesia, which recorded extraordinary growth of seven times and over 10 times, respectively. Japan and Thailand have also more than tripled their purchases. Together, these five destinations account for nearly 80% of India’s total exports, which reached $30.2 million in just the first five months of 2025-26, signalling continued strong momentum.

Exports of other value-added potato items have also expanded rapidly, tripling from $6.2 million in 2021-22 to $18.8 million in 2024-25,  an overall increase of over three times. The biggest gains came from potato flour, meal, and powder, used in soups, snacks, and bakery products, which surged from $0.4 million to $5.5 million, up more than 12 times.

Shipments of canned and ready-to-eat potatoes, as well as potato chips and crisps, doubled to $5.3 million, while potato starch exports rose nearly fivefold to $2.6 million, reflecting growing regional demand for versatile potato ingredients in packaged and convenience foods.

Key Drivers
Behind the surge lies a mix of regional demand and domestic capacity building. Southeast Asian economies have rapidly growing snack and QSR industries that rely on semi-processed potato inputs. India, with its lower costs, reliable year-round output, and proximity to ASEAN, has stepped into a supply gap left by Europe’s high energy costs and poor harvests and China’s focus on domestic consumption.

Preferential tariffs under the India–ASEAN Trade in Goods Agreement and short shipping routes via ports such as Mundra, Kandla, and Chennai have further strengthened India’s price competitiveness.

On the supply side, Gujarat and Uttar Pradesh have become India’s processing powerhouses. Gujarat’s Mehsana and Banaskantha districts now host modern dehydration plants supported by contract farming and cold storage networks, while new facilities are coming up in Agra and Farrukhabad in Uttar Pradesh. India’s 56-million-tonne potato crop, including high-solids varieties ideal for processing, has enabled exporters to scale production.

Indian firms have also upgraded quality, earning BIS,ISO, and HACCP certifications, and diversified into granules, flakes, and pellets tailored to specifications of multinational buyers. 

Europe’s processors, hit by energy shocks and weather volatility, and China’s inward shift have left global buyers looking for alternatives. India’s steady output, improving standards, and lower cost base have turned it from an occasional supplier into a reliable, year-round source for Asian food manufacturers.