India transforms from importer to exporter, shipping 135,877 tons of Frozen French Fries in 2023-24
NEW DELHI : In 1992, Lamb Weston, an American processed food company, initiated the import of Frozen French Fries (FF) into India, targeting star hotels. Canadian multinational McCain Foods entered the Indian market in 1996 as the exclusive supplier to McDonald’s, marking its debut in the country. The consumption of these crispy straight-cut deep-fried potatoes surged, with imports exceeding 5,000 tons annually by the mid-2000s and reaching a peak of 7,863 tons in the fiscal year 2010-11. However, the narrative shifted dramatically by 2023-24, with India ceasing imports and instead, exporting 135,877 tons of FF, valued at approximately 18.3 million USD. During April-October 2024, the export figures stood at 106,506 tons, worth about 13.1 million USD.
This transformation from an importer to an exporter of a quintessentially western fast-food item is attributed to the foresight of domestic entrepreneurs. They capitalized on the opportunity to process potato varieties conducive to FF production and cultivated them within India. The primary markets for Indian FF exports include Southeast Asia, the Middle East, Japan, and Taiwan. Haresh Karamchandani, managing director of HyFun Foods Pvt. Ltd., highlighted, “We have become an alternative supplier to these markets that previously imported only from Europe and the US.”
India’s FF export volume now surpasses its estimated domestic consumption of 100,000 tons. Approximately 80% of the domestic demand comes from businesses like McDonald’s, KFC, and Burger King, with the retail segment consuming the remainder. The total market size is estimated at around 173.4 million USD. Despite being the world’s second-largest potato producer, India primarily cultivated “table” potato varieties, which are not ideal for FF due to their higher moisture content and lower dry matter. The introduction of processing-grade potato varieties with higher dry matter content and lower reducing sugars has enabled the production of FF with a lighter color and higher yield.
HyFun Foods, with sales reaching approximately 163.4 million USD in 2023-24, has heavily invested in its production facilities. The company has embraced contract farming to ensure a steady supply of raw potatoes for year-round production. In the 2023-24 season, HyFun procured 300,000 tons of potatoes from 6,000 farmers across Gujarat. The company plans to expand its procurement to 400,000 tons from 7,250 farmers. The contract farming model offers farmers a predetermined price for their crops, eliminating market uncertainties and allowing them to focus on enhancing yield and quality.
HyFun also aims to reduce cultivation costs and improve efficiency through innovative farming techniques. The company is moving towards establishing its own greenhouse facility for producing mini-tubers using advanced soilless aeroponics and cocopeat media technology, which is expected to significantly reduce the cost of planting material. This initiative, along with the strategic shift to direct sourcing from farmers, underscores the evolving landscape of agricultural production and export in India, particularly in the high-tech greenhouse sector.