India Emerges As A Key Global Player In French Fry Market

Once a rare indulgence in India, French fries have now become a major export commodity. In 2023-24, India exported a remarkable 135,877 tonnes of French fries, valued at Rs 1,478.73 crore.

Between April and October 2024, exports further surged to 106,506 tonnes, reaching Rs 1,056.92 crore. This impressive growth underscores India’s transition from a consumer of French fries to a significant player in the global frozen French fry market.

Domestic Consumption And Exports

India’s domestic consumption of French fries stands at an estimated 100,000 tonnes annually, valued at Rs 1,400 crore. This includes sales to major fast-food chains like McDonald’s, KFC, and Burger King, as well as retail sales to households.

However, exports have now surpassed local consumption, highlighting India’s position as a key exporter in the global French fry industry.

India’s Shift From Importer To Exporter

In the early 1990s, India relied entirely on imported French fries. Lamb Weston began importing the product in 1992 for supply to luxury hotels, followed by McCain Foods in 1996 to serve McDonald’s as the fast-food giant launched in India.

By the mid-2000s, imports had reached over 5,000 tonnes annually, peaking at 7,863 tonnes in 2010-11. However, over the last decade, India has not only stopped importing but has transformed into a major exporter, mainly to Southeast Asia, the Middle East, Japan, and Taiwan.

Key Export Destinations

India’s French fry exports are primarily directed to Southeast Asia, including the Philippines, Thailand, Malaysia, Indonesia, and Vietnam. The Middle East also remains a significant market, with major exports to Saudi Arabia, the UAE, and Oman. India has also expanded its reach to East Asia, sending French fries to Japan and Taiwan. These regions’ growing demand for Indian-produced fries demonstrates the country’s emerging role in the global market.

Leading Exporters And Growth In Sector

HyFun Foods, based in Ahmedabad, leads the Indian French fry sector, contributing 85,000 tonnes of the 175,000 tonnes exported in 2023.

Other notable players in the market include Iscon Balaji Foods, Funwave Foods, ChillFill Foods, and J R Simplot, which operates a plant in Gujarat. Together, these companies have helped position India as a formidable competitor in the global French fry trade.

India’s Potato Production & Its Role In French Fry Production

India, the world’s second-largest potato producer, cultivates approximately 60 million tonnes of potatoes annually, trailing only China. However, much of this production is focused on ‘table’ potatoes, which are unsuitable for processing into French fries due to their high moisture content and higher sugar levels.

To meet the needs of the French fry industry, India cultivates processing-grade potatoes, which have a higher dry matter content, enabling better frying results and ensuring the fries retain a light color.

Conversion Efficiency In French Fry Production

Processing-grade potatoes show impressive conversion efficiency. It takes about 1.8 kilograms of potatoes to produce one kilogram of French fries. Specialty products such as hash browns, nuggets, and burger patties require less about 1.5 kilograms of potatoes per kilogram.

On the other hand, dehydrated potato flakes, which are used in snacks like bhujia and wafers, require six kilograms of potatoes for every kilogram of flakes.

Legal Challenges In India’s Potato Sector

Despite the growth, India’s potato sector has faced legal challenges, notably involving PepsiCo. The company introduced the FL 2027 potato variety, intended specifically for its Lay’s chips, and encountered disputes with farmers over its intellectual property rights.

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