Prime Minister Narendra Modi on Friday (Oct 30) virtually inaugurated the expanded French fries processing and packaging facility of Banas Dairy at Sanadar in Gujarat's Banaskantha district. The expansion, involving an investment of ₹51.65 crore, is aimed at increasing potato processing capacity, strengthening the agricultural supply chain and creating additional market opportunities for farmers.
The inauguration took place during an event at Bhildi. With the expansion, the facility will have the capacity to produce five metric tonnes of French fries per hour, strengthening Banaskantha's position as an important centre for potato processing.
Banaskantha's Growing Potato Production
Banaskantha is among India's major potato-producing districts, supported by favourable climatic and soil conditions. Over the past 25 years, the area under cultivation of processing-grade potatoes has increased from approximately 400 hectares to 61,016 hectares.
During 2024-25, the district recorded an estimated potato production of 18.7 lakh metric tonnes, with an average productivity of around 30 tonnes per hectare.
The expansion of the processing facility is expected to help bridge the gap between agricultural production and value-added food manufacturing. French fries require specific potato varieties with suitable dry matter content and processing characteristics.
Connecting Farmers with the Processing Industry
Banas Dairy entered the French fries business under the Amul brand in 2019. Since then, it has worked towards developing an integrated supply chain covering seed development, cultivation, procurement, storage and processing.
The initiative involves collaboration with the Central Potato Research Institute and other institutions for disease-free planting material. Tissue culture laboratories and aeroponic technology are used to produce mini-tubers, which are further developed into certified seeds and supplied to farmers.
The dairy also follows an advanced procurement pricing system to provide farmers with greater clarity before cultivation. The procurement price was fixed at ₹13 per kg in 2024-25 and ₹14 per kg in 2025-26.
Storage and Sustainable Processing
Banas Dairy has also established a cold storage facility with a capacity of 10,000 metric tonnes in 2024 to support potato storage and supply management.
The processing facility incorporates waste management practices, including the use of organic waste generated during processing for biogas production. The remaining material is returned for agricultural use.
Focus on Exports and Value Addition
India exported approximately 2.77 lakh tonnes of value-added potato products during 2025-26, generating an estimated ₹2,744.50 crore in export earnings.
The expanded facility is expected to strengthen domestic processing capabilities and support opportunities in international markets. Its integrated model seeks to connect farmers directly with food processing and create a more organised market for processing-grade potatoes.
The project reflects the potential of cooperative institutions in linking agricultural production with modern food processing, helping farmers participate in the value-added economy while strengthening India's position in the global processed food market.