Banas Dairy is expanding its French fries processing capacity in Gujarat’s Banaskantha region from two tonnes to five tonnes an hour, backed by an investment of ₹51.65 crore aimed at increasing potato processing and value addition for local farmers. Prime Minister Narendra Modi is scheduled to e-inaugurate the expanded facility at Sanadar in Deodar taluka of Vav-Tharad district on Friday.
According to an official release reported by The Hindu BusinessLine, work on the processing and packing line expansion began in April 2026. The upgraded facility is expected to increase Banas Dairy’s ability to process potatoes into value-added products for domestic and export markets.
The expansion is located in a district that has developed into one of India’s major centres for processing-grade potato cultivation. The area under such cultivation in Banaskantha has grown from around 400 hectares 25 years ago to 61,016 hectares. In 2024-25, the district produced approximately 1.87 million tonnes of potatoes, with reported productivity of about 30 tonnes per hectare.
The growth of the processing-potato sector has been supported by fog-free winters, high dry matter content in the crop and contract farming arrangements. These conditions are important for industrial French fries production, which requires potatoes with characteristics suited to processing rather than only fresh consumption.
Banas Dairy entered the French fries business in 2019 under the Amul brand. It has since developed an integrated supply chain covering certified seed production, cultivation, procurement, storage and processing. The cooperative sources disease-free germplasm from the Central Potato Research Institute and other providers, multiplies the material in its tissue culture laboratory and develops G0 minitubers at an aeroponic facility in Kanpur.
The planting material is then multiplied in the field up to the G3 generation to produce certified seeds for farmers. The arrangement is designed to improve the availability of potato varieties suited to industrial processing requirements.
Banas Dairy also uses an advance procurement price mechanism. Under this system, the procurement price is fixed when seeds are supplied to farmers, giving growers greater clarity on expected returns before the cultivation season begins. The cooperative reported passing on a price difference of approximately ₹1.83 crore to potato farmers in 2023-24. Its reported buyback price was ₹13 per unit in 2024-25 and ₹14 per unit in 2025-26.
The cooperative established a 10,000-tonne cold storage facility in 2024 to support its potato operations. In November 2025, it signed a memorandum of understanding with Bharatiya Beej Sahakari Samiti Ltd to facilitate the availability of certified seeds to farmers across India.
The processing operation also includes waste utilisation measures. Organic waste generated during processing is used to produce biogas, while the residual material is returned to agricultural fields. The expanded facility is scheduled for e-inauguration on Friday.
