In 1992, the American processed food company Lamb Weston began importing frozen French fries (FF) to supply Star Hotels in India. Four years later, Canadian multinational McCain Foods followed as the sole supplier to McDonald’s, which opened its first restaurant in the country.
As consumption of crispy, straight-cut French fries increased, imports also increased, exceeding 5,000 tonnes per year by the mid-2000s and peaking at 7,863 tonnes in 2010-2011 (April-March). Reached.
However, in 2023-2024, not only did imports virtually stop, but India actually exported 1,35,877 tonnes (worth Rs 1,478.73 crore) of FF. From April to October 2024, the export volume reached 106,506 tons with a value of 1,056.92 million rupees.
This turnaround from being an importer to an exporter of very Western fast food products is thanks to opportunistic domestic entrepreneurs who seized the opportunity to process potato varieties suitable for FF production and cultivation in India. was also utilized.
India’s FF exports are primarily to Southeast Asia (Philippines, Thailand, Malaysia, Indonesia, and Vietnam), the Middle East (Saudi Arabia, UAE, and Oman), and even Japan and Taiwan. Haresh Karamchandani, Managing Director and Group CEO, HyFun Foods Pvt. Ltd., said, “We have become an alternative supplier to these markets where previously we only imported from Europe and the US. Ta. Co., Ltd.
The Ahmedabad-headquartered company accounted for around 85,000 tonnes of the 175,000 tonnes of FF exported from India last year and a further 8,000 tonnes of the 12,000 tonnes of potato hash browns. Other major exporters include Iskcon Balaji Foods, Funwave Foods, Chilfil Foods (all based in Gujarat) and US-based JR Simplot (which also has a factory in the state).
India’s FF exports exceed estimated domestic consumption of 100,000 tons. Approximately 80% of this consists of sales to corporates (McDonalds, KFC, Burger King, etc., in addition to hotels, restaurants and caterers) at an average realization of Rs 125/kg, and the rest to the retail sector at an average realization of Rs 200/kg. It will be sold to. The total market size is 140 billion rupees.
Table and comparison of potatoes for processing
India’s potato production is 60 million tonnes (mt), second only to China’s 95mt.
However, many of them are regular potatoes used for cooking and home consumption. These “edible” varieties have a high water content, with little to no dry matter of 15-16%. Also, if harvested tubers are stored refrigerated at 2 to 4 degrees Celsius to prevent germination, they will contain high levels of reducing sugars (mainly glucose). Excess sugar will cause darkening of FF and chipping of fried foods.
Processing grade potato varieties have a dry matter content of 20-23% (low energy and oil consumption, high FF/chip recovery) and less than 0.1% reducing sugars on a fresh weight basis ( This results in a brighter color in the final product).
Such varieties include Santana, Innovator, Kennebec, Kufri Frysona, Kufri FryoM for FF, Lady Rosetta, Kufri Chipsona-1, 2, 3, and 4 for chips. Santana (STET), Innovator (HZPC) and Lady Rosetta (Meijer) breeders are all Dutch companies, while the Kufri variety was developed by the government-owned Central Potato Research Institute (Shimla).
Approximately 1.8 kg of potatoes are required to produce 1 kg of FF, while 1.5 kg for specialty items (hash browns, burger patties, nuggets, aloo tikki, etc.) and dried potato flakes (bhujia snack makers such as ) will be 6 kg. Bikanervala, Balaji Wafers, Bikaji Foods).
contract farming model
With a turnover of Rs 1.32 billion in 2023-2024, HyFun Foods has invested close to Rs 700 crore in its plant in Gujarat’s Mehsana district, producing 17 tonnes of FF per hour and 2.7 tonnes of specialties per hour. It produces 3.6 tons/hour of potato flakes. .
But establishing processing capacity is easier than ensuring there is enough raw produce available to operate year-round. This is where contract farming comes into play. In the 2023-24 season (potatoes are sown in October-November and harvested in February-March), HyFun will sell 30 plants from 6,000 farmers in Banaskantha, Sabarkantha, Gandhinagar and Mehsana districts of Gujarat. Procured 10,000 tons.
This season, the company plans to buy 400,000 tonnes from 7,250 farmers cultivating 30,000 acres in Gujarat, 1,500 acres in Madhya Pradesh and 500 acres in Uttar Pradesh. “Our goal is to source 1 million tonnes from 20,000 farmers on over 80,000 acres by 2027-2028,” said S. Sounder, CEO of HyFarm, HyFun’s Farmer Connect division. Larajan said.
HyFun is offering farmers Rs 13.8 per kg for crops to be harvested from next month. This price, contracted in September before planting and paid at the farm gate, is for potatoes over 40 mm in diameter (large oblong tubers ideal for making FF). The company also accepts smaller size tubers for processing into flakes at a lower rate of Rs 8/kg.
Farmer Alpesh Navinbhai Patel cultivates Santana variety of potatoes on 180 acres of land in Sonathan village. (Express photo: Harish Damodaran)
“Contract farming works well because there is no uncertainty in the price or marketing of our produce. We can focus on production and yield and improvement, not just quality,” he said, adding that the 180-acre (180-acre) Alpesh Navinbhai Patel, who cultivates the Santana variety on 21 acres of his land and the rest on lease, pointed out. The 43-year-old is one of the many residents of Sonathan village in Sabarkantha’s Plantigi taluka who cultivate potatoes on a total of 3,900 acres of land, of which 3,000 acres are dedicated to HyFun.
From seed to shelf
Contract farming is more than just guaranteeing price and sourcing. It is also about deepening farmer involvement on the farm itself.
HyFun provides farmers with high-quality, disease-free seeds of Santana, Frisona, and FryoM potatoes. The company sources mini-tubers grown in tissue culture laboratories of seed potato companies ITC Technico Agri Sciences, Mahindra HZPC and KF Biotech. These are first propagated on HyFun’s 250+ acre corporate farm and then over two generations through contract seed producers in Punjab, Haryana and UP. The third generation seeds were planted by farmers who preferred Patel to supply HyFun as commercial potatoes.
“We plan to build our own greenhouse facility in Punjab by 2026 to produce mini tubers using soilless aeroponics and sterile cocopeat medium technology. The cost of plantation materials will be halved,” Soundararadjane claimed.
HyFun also works with farmers to reduce cultivation costs. Patel grows guar and daincha as green manure legumes for 60 to 65 days during the monsoon to increase the organic carbon and nutrient content in the soil before sowing potatoes. Last year, he averaged 13.5 tons of potatoes per acre. If the price is Rs 13.8 per kg and the cost of production is Rs 85,000-90,000, his profit per acre will be Rs 96,300-101,300.
Large rectangular potatoes (right) are perfect for making fries. (Express photo: Harish Damodaran)
This season, HyFun will be conducting demonstrations of the “HyFarm paathshala” with two rows within a 48″ bed width (instead of the usual 4 row and 60″ geometry) and (Instead of shape) Plant seed potatoes 5.5 to 6 inches deep. Currently it is 4.5 inches). These have been shown to reduce seed (25 to 19 bags per acre), fertilizer (20%), and water (50%) requirements. This is because only one horizontal drip line is required between two rows compared to two between four rows. ), without affecting yield.
A line of washed and peeled potatoes at HyFun Foods’ fried potato manufacturing unit in Mehsana district, Gujarat. (Source: Express Photo)
“At Rs 1,560 per bag, my seed cost alone today is Rs 39,000 per acre. I reduced the seeds by six bags, added two bags each of diammonium phosphate and potassium hydrochloride (from three bags) and added urea. If I use two bags (from 2.5 bags), I will save Rs 12,500 per acre. That is as good as paying Rs 0.9 per kg more for my potatoes,” Patel added.
French fries processed at HyFun Foods’ factory in Mehsana. (Source: Express Photo)
In the future, agricultural companies in general may be increasingly required to procure agricultural products directly from farmers rather than from intermediaries. A seed-to-shelf approach is important, especially when selling in global markets where cost competitiveness and product quality are equally important.
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