India becomes major snack supplier in Asia as processed potato exports jump 450%

India is rapidly emerging as a major snack ingredient supplier in Asia, driven by a sharp surge in processed potato exports, according to a report by the Global Trade Research Initiative (GTRI). The report reveals that exports of dehydrated potato granules and pellets soared by 450%, reaching $63.3 million in FY2025, up from $11.4 million in FY2022—making this the country’s fastest-growing processed food segment.

Other potato-based products such as flour, starch, chips, and ready-to-eat snacks have also shown robust growth, climbing to $18.8 million from $6.2 million in the same period. Potato flour alone recorded a staggering 1,100% increase in exports.

Malaysia remains the largest importer, purchasing goods worth $22.1 million, followed by the Philippines and Indonesia, where exports have surged 600% and 924%, respectively. Japan and Thailand have also more than tripled their imports. These markets, accounting for the bulk of India’s exports, have achieved BIS, ISO, and HACCP certifications, reflecting rising quality standards.

The sector’s expansion is being fueled by Gujarat and Uttar Pradesh, where investments in dehydration plants, cold-chain networks, and contract farming have created a strong value chain. Gujarat’s Mehsana and Banaskantha districts host integrated dehydration and storage facilities, while Agra and Farrukhabad in Uttar Pradesh are seeing new plants under development.

Preferential tariffs under the India–ASEAN Trade in Goods Agreement and efficient connectivity through Mundra, Kandla, and Chennai ports have further enhanced India’s price competitiveness in the region.

Global factors have also played a role: Europe’s high energy costs and erratic harvests, combined with China’s focus on domestic demand, have opened up opportunities for India to position itself as a reliable, low-cost, year-round supplier to the region’s snack and quick-service restaurant (QSR) industries.