Mehsana: In a vast processing facility in Mehsana, freshly scrubbed potatoes glide along conveyor belts like they’re in a pageant. The smell of starch and steel permeates the air.
“Every piece is checked, rechecked. This is no ordinary crop anymore,” said Mithlesh Rai, the food engineer overseeing the factory line of spuds. They go through a multi-step makeover—scrubbing, slicing, steaming—and numerous checks before they are deemed ready for deep freezing. From Gujarat, they travel to freezers across India and beyond: Nepal, Bangladesh, Japan, Australia, the UAE, Mauritius.
Rai, who runs the line at HyFun Foods’ processing plant, calls this process the “rebirth of the potato.”
“From sugar levels to shape, we take care of every parameter. Everything has to be perfect,” he said.
With an annual output of nearly 60 million metric tonnes, India is the second-largest potato producer in the world, after China. But for a long time, it wasn’t doing too well in the frozen department. In 2010-11 the country was importing 7,800 tonnes of frozen potato products to cater to the fast-food industry, but there’s been a U-turn since then. In 2023, imports had dropped to just 55 tonnes, driven by a boom in domestic processing capacity.
Gujarat is the heart of this transformation where around 80 per cent of India’s processed potato production takes place
-Dr RK Singh, head of CPRI, Meerut
The growth of the fast-food industry and increasing consumer cravings for fries, hash browns, and ready-to-cook frozen products kicked off this change. Homegrown companies like HyFun, Falcon Agrifriz, Iscon Balaji, and McCain started investing in processing technologies and an expanding network of high-end cold chain facilities crystallised.
Scientists did their part as well. The Central Potato Research Institute (CPRI), under the Indian Council of Agricultural Research (ICAR), developed varieties with low sugar and high dry matter—qualities that make for crispier fries that soak up less oil. Now, India is not only meeting its own demand but shipping frozen potato products internationally.
“And Gujarat is the heart of this transformation where around 80 percent of India’s processed potato production takes place,” said Dr RK Singh, head of CPRI, Meerut, adding that the state’s cool winters, low humidity, sandy loam soil, and moderate rainfall create ideal conditions for growing processing-grade potatoes.
Farmers, too, have benefited from this through contract farming.
“Earlier, we sold potatoes at the mandi where there were a lot of price fluctuations, and the profits were never guaranteed,” said Patel Sureshbhai, a farmer from Banaskantha. “Now, we have buyback assurance and support with seeds and crop guidance.”
In a country where fresh aloos are a staple of most kitchens, there’s a growing appetite for the frozen kind. A decade ago, processed potatoes made up just 6-7 per cent of consumption, according to Singh. Today, it’s closer to 15 per cent.
“Potatoes were once considered a poor man’s crop. Later, it became a nakdi fasal—a cash crop that brought some income to farmers. Now, it’s transforming into an industry crop, with large companies building businesses around it,” added Singh. “Potatoes are going global, and the future of this industry is extremely promising.”
A decade ago, India produced about 40-42 million tonnes of potatoes, and even a slight surplus could crash market prices, Singh said. Now, with 12-14% of that production going into processing, prices are more stable and farmer incomes more secure.
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Freeze, fry, fortune
Every weekend, Krishna Patel from Ahmedabad makes it a point to go to the local McDonald’s for fries and aloo tikki burgers. The 22-year-old is the first in his family to eat at a fast-food outlet, but now even his father and grandfather join him. It’s a family ritual.
“My grandmother also likes fries,” he said. “Since she doesn’t eat onion and garlic, it’s the one thing she can have at the restaurant. It’s been only 12-15 years since we started eating such food. Now it’s part of our lives.” Ready-to-fry frozen snacks have also become regular items on their grocery list.
Haresh Karamchandani, the CEO and MD of HyFun Foods, saw this potential a decade ago. But when he began production in 2015, processed potatoes were not quite the powerhouses they are today.
“Back then, we had to convince buyers that India could match international standards. Now, Indian fries are on shelves and menus across the world,” Karamchandani told ThePrint.
When we started this business thirteen years ago, our profit was around Rs 4 crore. Today, it has grown to Rs 1,500 crore. This business has immense potential because the demand for frozen potato products is rising steadily
-Chandubhai Virani, owner of Iscon Balaji.
As frozen French fries, tikkis, and burgers began finding more takers, Karamchandani, who comes from a family of potato traders, started doing the groundwork in 2010. Over the next five years, he researched international demand, scouted European machinery, and prepared for large-scale production. HyFun’s first big order came from Burger King India. KFC followed suit.
“Earlier, no one believed India could supply frozen French fries. Today, we’ve established ourselves as a global quality supplier,” he said.
HyFun was not the only company to see gold in the humble potato early on. Other companies such as Iscon Balaji, which opened its first plant in 2012, have also scaled up. It now has four facilities in Gujarat, employs about 1,000 workers, and partners with 8,000 contract farmers.
“When we started this business thirteen years ago, our profit was around Rs 4 crore,” said Chandubhai Virani, owner of Iscon Balaji. “Today, it has grown to Rs 1,500 crore. This business has immense potential because the demand for frozen potato products is rising steadily.”
One of Isckon Balaji’s major contributions to the farming community was finding a profitable use for small-sized potatoes, which were often discarded due to a lack of buyers. After the company established its potato flake production plant, even the most diminutive tubers started pulling their weight.
“Now, every potato has value,” said Virani. “Our flakes plant gave farmers an income stream from what was once considered waste.”
A big boost also came from the Central Potato Research Institute, which developed varieties to suit Indian conditions and processing requirements.
“CPRI’s work with new varieties, region-specific guidance, and agronomy has been a backbone for the industry,” Karamchandani added. “Every year, our contract farmers know in advance what they’ll earn. Their returns are at least 40–50 per cent higher than the cost of production.”
After eight years of growing potatoes under a contract farming model, Gujarat farmer Dhawal Patel’s profits have soared. This year alone, he earned about Rs 50 lakh.
The science of the spud
In Modipuram on the outskirts of Meerut, the ICAR-CPRI campus is dotted with mounds of potatoes leftover from the harvest in March. These are the seed potatoes farmers collect each year. Since the 1990s, the institute has also played a big role in sowing the seeds of India’s processed potato revolution.
In 1998, after eight years of work, it announced India’s first two potato processing varieties, Kufri Chipsona-1 and Kufri Chipsona-2. It has continued to research and develop other high-dry-matter, low-sugar varieties. It’s helped give rise to a new generation of farmer-producers linked directly to global food chains.
“Our institution has developed varieties like Chipsona-1, Chipsona-3, Chipsona-5, Frysona, and FryOn, which are highly suitable for potato processing. These varieties ensure better colour and quality in chips and fries,” said Dr RK Singh, head of station.
A decade ago, India produced about 40-42 million tonnes of potatoes, and even a slight surplus could crash market prices, according to Singh. Now, with 12-14 per cent of that production going into processing, prices are more stable and farmer incomes more secure.
‘Rs 60 lakh as pure profit’
Watching his father labour to grow wheat, bajra, and groundnuts, only to barely cover costs, Dhawal Patel swore he’d never become a farmer. Back in the mid-2000s, the returns from their seven bigha plot in Banaskantha rarely crossed Rs 30,000 per harvest. The struggle didn’t seem worth it.
But since 2017, Dhawal has changed his mind. Now, after eight years of growing potatoes under a contract farming model, his profits have soared. This year alone, he earned about Rs 50 lakh.
“Our neighbour first got into contract farming, and within a year, he bought a new tractor. That’s when I approached him to understand if I could also get involved,” said Dhawal, who now supplies to HyFun Foods.
Every year, our contract farmers know in advance what they’ll earn. Their returns are at least 40–50 per cent higher than the cost of production
-Haresh Karamchandani, CEO of HyFun Foods
Within two years of starting, he picked up new farming techniques—how to sow seeds properly, manage watering, maintain soil health—and his profits began to rise.
“Earlier, we used to sell potatoes at Rs 5-6 per kg in the mandi. Now, these companies give us Rs 14 per kg, which is very decent,” he said.
More than 7,000 farmers are associated with HyFun Foods, and over 8,000 have contracts with Iscon Balaji.
While contract farming assures price stability, it isn’t risk-free. Farmers remain vulnerable to weather shocks and can have their produce rejected for not meeting companies’ quality parameters. But overall, Gujarat farmers say it’s working out in their favour.
Dhawal, for one, earns around Rs 40,000 profit per bigha. Over the last eight years, he has bought an additional 80 bigha of land and built a new house. His children attend a private school. He says none of it would have been possible had he continued traditional farming.
“The best part is, we know our profits even before harvesting. We place our orders in advance with the companies, specifying how much of which potato variety we will deliver. For example, right now, the price for one kilogram of Frysona potatoes is Rs 13.50,” he said.
Another Banaskantha farmer, Sureshbhai Patel, got into contract farming in 2011. He started with 20 acres, working with another company before switching to HyFun. As his returns grew, he leased another 25 acres.
“This year, I earned around Rs 1 crore, with Rs 60 lakh as pure profit. Earlier, I did not know much, but HyFun’s team taught us about seed selection and best farming practices,” said Sureshbhai.
On the policy front, the Model Contract Farming Act, 2018, is a framework that encourages states to create transparent agreements between farmers and companies. Additionally, under the PM-Kisan Sampada Yojana, food processing units receive financial support to improve rural supply chains and boost farmer incomes.
A potato harvested here might end up as fries in a Tokyo restaurant, a frozen pack in a Dubai supermarket, or part of a shipment for industrial use.
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Potatoes 2.0
Work is in full swing, but there’s hardly anyone to be seen at the brightly lit HyFun processing plant as machines churn out fries, wedges, and flakes.
“Most of these machines are automatic so we don’t need many people. From scanning of the quality of potato to heating them and packing, everything is done by the machines,” said engineer Rai.
Gujarat is at the centre of this high-tech potato transformation. But new processing hubs are also emerging in Punjab, Uttar Pradesh, West Bengal, and Madhya Pradesh, linking farmers to both domestic and export markets.
One of the more invisible heroes behind this success story is cold storage. As of 2024, India has about 8,600 cold storage facilities with a total capacity of 39.42 million metric tonnes. Around 75 per cent of this capacity is used to store horticultural produce, especially potatoes. In 2013, there were only about 6,300 such facilities.
Historically, these storages served the basic function of preserving crops between harvests. But over the last decade, many have upgraded to handle multiple crops and processed goods, with better temperature control and hygiene standards. Gujarat alone has more than 1,500 such facilities, most concentrated in Banaskantha and Mehsana districts.
A potato harvested here might end up as fries in a Tokyo restaurant, a frozen pack in a Dubai supermarket, or part of a shipment for industrial use. Some are now even being processed for bioethanol, a renewable fuel.
“In the coming time, the potato will be developed as an industrial crop. There is already talk of using it for ethanol production and as an energy crop,” said Singh. “It will fuel industries, empower farmers, and put India at the centre of the world’s food and energy future.”
(Edited by Asavari Singh)
This (contract farming and HUGE profits) would have been the national picture if the three farm laws would have been implemented.