India: New Players Strengthen the Potato Processing Industry
In mid-October 2025, India’s potato processing sector is witnessing a surge of fresh investment. Farmton Foods, part of the Somnath Group, has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to build a state-of-the-art processing plant valued at USD 69.5 million (EUR 60 million). The facility is expected to become operational by late 2026.
The factory will have a production capacity of 6.5 tons per hour of frozen potato products, including coated fries and specialty potato items. About 80% of production will be exported, while 20% will serve the domestic market.
Somnath Group already has a strong agribusiness base — working with over 8,000 farmers and managing 8,200 acres of potato fields, as well as its own 80,000-ton storage capacity. Previously a raw-material supplier to Balaji, McCain, Hyfun, Iscon Balaji, and Bikaji, the group may now shift its focus toward its own value-added operations.
Eagle Fries: A New Brand Enters the Market
Another milestone for India’s frozen potato industry came when MS International launched its new processing brand Eagle Fries, marking the company’s entry into the frozen potato segment. Formerly known as a fresh fruit exporter, MS International is now diversifying into processing — a move that underscores India’s growing focus on value-added agribusiness and the expansion of domestic processing capacity.
Australia: Tasmanian Farmers Protest Simplot’s Decision
While India’s processors expand capacity, Tasmanian potato growers in Australia are fighting for survival. The multinational Simplot has proposed a 6% cut in contract prices, a move farmers say would slash profit margins by 39% and push the local industry into a downward spiral.
According to the Tas Farmers organization, Simplot appears “globally indifferent,” seeking to align Tasmanian potato prices with what the company can source from India or China.
At the same time, Australia’s frozen potato imports have quadrupled in seven years, reaching 188,339 tons in 2024, mostly from China and India, where production costs are significantly lower.
Notably, Indian supplier Hyfun Foods recently secured a major distribution deal with Woolworths to supply frozen fries and other potato products — a sign of India’s growing export footprint and the increasing pressure on Australian producers.
India’s expansion of processing capacity and export orientation could reshape the global frozen-potato trade — but it also intensifies competition for traditional producers.
Will Australia be able to keep its potato growers competitive in the face of rising imports from Asia?
