Banas Dairy Expands French Fries Plant with ₹51.65 Crore Investment; Capacity to Rise to 5 Tonnes per Hour

Vav-Tharad: Prime Minister Narendra Modi will e-inaugurate Banas Dairy’s French fries processing plant at Sanadar in Deodar taluka of Vav-Tharad district on October 30. In April 2026, Banas Dairy began work on expanding its French fries processing and packing line, increasing its capacity from 2 tonnes to 5 tonnes per hour at an investment of ₹51.65 crore.

The expansion is expected to strengthen potato processing in Banaskantha, one of India’s largest potato-producing districts, while improving market opportunities and supporting better returns for local potato farmers, according to a press release.

Banaskantha: One of India’s Largest Potato-Producing Districts

Banaskantha has emerged as a major centre for potato cultivation, particularly for processing-grade varieties. Over the past 25 years, the area under processing-grade potato cultivation has increased from around 400 hectares to 61,016 hectares.

In 2024-25, the district produced approximately 1.87 million tonnes of potatoes, with an average productivity of around 30 tonnes per hectare. Favourable winter conditions, high dry matter content in potatoes and contract farming have contributed to this growth.

From Certified Seeds to French Fries

Banas Dairy entered the French fries segment in 2019 under the Amul brand and has since worked to develop an integrated seed-to-fry supply chain. The model covers the entire process, from developing quality planting material and cultivating potatoes to procuring the produce and processing it into French fries.

The process begins with disease-free germplasm sourced from the Central Potato Research Institute and other providers. This material is multiplied in Banas Dairy’s tissue culture laboratory and developed into G0 minitubers at its aeroponic facility in Kanpur. The minitubers are then multiplied in the field up to the G3 generation to produce certified seeds for farmers, supporting the cultivation of potatoes suitable for processing.

Assured Procurement Prices to Support Farmers’ Returns

A key feature of Banas Dairy’s model is its advance procurement price mechanism, under which the procurement price is fixed when seeds are supplied to farmers. This gives farmers greater clarity on the expected price of their produce and helps them plan their cultivation season.

In 2023-24, Banas Dairy passed on a price difference of approximately ₹1.83 crore to potato farmers. The buyback price was ₹13 per unit in 2024-25 and ₹14 per unit in 2025-26.

Strengthening Seed Availability and Storage Infrastructure

To strengthen the potato value chain, Banas Dairy established a cold storage facility with a capacity of 10,000 tonnes in 2024. In November 2025, it also signed a memorandum of understanding (MoU) with Bharatiya Beej Sahakari Samiti Ltd to ensure the availability of certified seeds to farmers across India.

Organic Waste Used for Biogas Production

Banas Dairy’s potato processing operations also incorporate organic waste utilisation. Waste generated during potato processing is used to produce biogas, while the residual material is returned to agricultural fields.

Expanding Markets for India’s Value-Added Potato Products

The expansion comes amid growing opportunities in the market for value-added potato products. In 2025-26, India exported approximately 2.77 lakh tonnes of value-added potato products worth around ₹2,744.50 crore.

The expanded processing capacity at Sanadar is expected to strengthen Banas Dairy’s operations and help connect Banaskantha’s potato farmers with wider markets. The facility’s proximity to Kandla and Mundra ports also offers a logistical advantage for exports.

By combining quality seeds, organised procurement, storage infrastructure and expanded processing capacity, Banas Dairy aims to strengthen the value chain for processing-grade potatoes and increase value addition within the region. DeshGujarat