POTATO FLOUR

EXPORT POTENTIAL ANALYSIS

Pradeep kumar
09020242026
 Potato flour
• This is new product for India .
• It is widely consumed in western countries .
• The market potential is very huge both in India and for
exports .
• Demand is more than the supply at present
• Only very few companies in India are manufacturing this
product .
• So it’s the right time to hit the market .
• Product has been proved highly useful in Indian Homes,
Restaurants, Star Hotels, Snacks manufacturers, Fast Food
chains .
• Adequate quantity of suitable chip varieties,
which are used for powder making.
• Kufri Jyoti,
• Kufri Chipsona.
 Introduction
• Potato flour is a flour which is produced from
potatoes which have been cooked, dried, and
then ground potatoes.
• It is commonly confused with, but is different
than, potato starch flour which is made only
from the starch of a potato.
• Potato flour is typically less dense and less
white than potato starch.
 Uses for Potato flour
• Ranging from Passover cooking to gluten-free
baking.
• Potato flour is commonly used to produce
compound potato chips . 
• Potato flour is as a thickener.
• Potato flour can be added to soups,
stews, gravies, and other dishes to encourage
these dishes to thicken without adding a strong
flavor or intense starchy texture.
Potato flour -Manufacturing
Procurement of potato

Washing

Cooking

Pulping

Drum drying

Potato flour
• Yield ratio of raw potatoes to flour is approximately 5.7:1.

• Higher recovery ratio of flour is from fresh potatoes and lower

recovery ratio from stored potatoes

• Re-hydration ratio of flakes to mash potato is 1:5.

• Potatoes with high solid contents and low sugar are best to
produce dehydrated products. These types of potatoes are
widely available in India.
Machinery required
 PLANT AND EQUIPMENTS:
• OPTION A:
• Chinese Technology: Machinery & Equipment's:
Description Price (USD) Price (Rs)
Equipment's cost 747,500 3,43,85,000

1 dollar =46 Rs
Capacity:
Hourly output 500kg/hr
Daily output (18 hour 9 tonnes
operation)
6 month output (180 days) 1,620 tonnes

12 month output (360 days) 3,240 tonnes

 PLANT AND EQUIPMENTS:
• European Technology: Machinery & Equipment's:
Description Price (Euro) Price (Rs)
Equipment's cost 2,677,950 159338025 • 1 euro= 59.5
Capacity:
Line input 6,814 kg/hr (Raw potatoes)
Line output 1,200 kg/hr (Flakes or flour)
Line yield 18%
Recovery Ratio (Potatoes to flakes) 5.7:1
21.6 tonnes
Daily output (18 hour operation)
12 month output (360 days) 7,776 tonnes
 Potato Production- world wide

Area (average of 2007-2008) Production (average of 2007-2008)

Rank Country Ha Rank Country Mt

1 China 4,630,454 1 China 68,892,594

2 Russia 3,195,433 2 Russia 34,860,837
3 Ukraine 1,599,000 3 India 23,191,200
4 India 1,255,667 4 USA 20,513,490
5 Poland 921,129 5 Ukraine 17,487,833
World potato production, 1991-2007
Potato production, by region, 2007
 Potato production, by region, 2007

• Asia and Europe are the world's major potato producing regions, accounting for
more than 80 percent of world production in 2007.
• Harvests in Africa and Latin America were far smaller, production was at or near
record levels.
• North America was the clear leader in yields, at more than 40 tonnes per
hectare.
Potato consumption, by region, 2007
Potato consumption, by region, 2007
 Cost of Cultivation
  Cost
Production variable cost  
Seed and seed treatment 9726
Fertilizer and manures 5043
Plant protection measures 888
Irrigation charges 624
Machinery charges 2908
Hired labour 2764
Interest on working capital 1193
Sub-Total A 23147
Marketing cost  
Package expenses 2206
Transportation expenses to market 1474
Sub- Total B 3680
Gross Value Product 57015
Return over Production Variable Cost (Gross Return –
33868
Production Variable cost A)
Return over Total Cost (Return over Production variable cost –
30188
Marketing Cost B)
 Potato Flour Exports From India(2007-08)
Countries Quantity(Tonnes) Value(1000 $)
United States of America 1764 879
Indonesia 740 576
Australia 278 124
Singapore 206 106
Yemen 200 73
Iran 151 200
Oman 151 146
Bangladesh 100 18
United Kingdom 97 39
United Arab Emirates 76 47
Algeria 47 39
Kuwait 46 24
Canada 39 20
Jordan 38 58

Source- www.faostat.fao.org
Potato flour Exports from INDIA

Source- www.faostat.fao.org
Potato flour Imports of USA

Source- www.faostat.fao.org
 Potato Flour World export scenario

Top Exporters Value (in Million) QTY (in Tonnes) Avg. Price/kg
Netherlands $100,430 88,583 $1.13
USA $46,106 61,526 $0.75
Germany $38,763 33,398 $1.16
Belgium $23,996 19,747 $1.22
France $21,296 13,988 $1.52
Other reporters $52,103 55,613 $0.94
Total $282,695 272,855 $1.04

Source: United Nations Statistics Division - Commodity Trade Statistics Database

Global potato flour Imports
TARGET MARKETS
Supply Chain of Potato
 TARGET COUNTRIES
• UK
• ITALY
• USA
• ITC HS number POTATO FLOUR- 110510
 Main competitors in INDIA
Name Place Phone no
Siddhartha Starch Pune +9102025651425
Potato King Foods Limited Kolkata +(91)-(33)-24649271
Shree Marketing & projects KOLKATA  
 Bharat Starch Industries Ltd    NEWDELHI  
 Sree Rajendra Starch Products  Tamil Nadu  
SRV India
WTO Tariff
 International Pricing

Source: next tag 1 ounce=  0.0283495231

 Packaging

•    Export
Retail: - Packets of
• (1)   250 gm.
• (2) 500 gm.
• (3) 1 kg.
• (4) 2 kg.
• (5) 5 kg.
Packaging Machinery
 Manufacturing Requirement
• Potato powder recovery: 17% of the raw material.
• Cost of raw material: Rs 2500 per MT including all materials.
• Sale price of powder: Rs. 55000/ MT. to Rs 60000 / MT
(depends on market)
• Power requirement:
20 HP to 60 HP depends on production capacity installed.
• Water requirement:
a) 50,000 litres per day to 5,00,000 litres per day depending
on production capacity.
Quality control and Statutory Requirements

• The unit needs to obtain a license under FPO

1955 from the Ministry of Food Processing
Industry
• Clearance from State Pollution Control Board
 Logistics
•  Vayoodoot Logistics in India on FOB & FOR
basis.
• Mr. J.B. Singhal         M :9890004442    
Mr. Ashwani Singhal M : 9890003999  
Mr. Arun Singhal       M : 9890004449  
 Logistics
• Minimum Order Quantity – 10 tons
• To produce one kilo flakes or flour, the raw potatoes
will cost approximately Rs. 28.50 (5 x 5.7) and the cost
for one kilo imported market is Rs. 90. Therefore, a
local manufacturer will have a margin of 68.33% to
cover its other costs and make a handsome profit.

• The by-products of this process peel and cutting losses

can be sold to cattle farmers to generate additional
revenue and off-set the input cost of raw material.
 STRENGTHS
• Cost of production in India is lower by about 40 percent.
• Large number of research institutions such as CFTRI,
CIFT, NDRI, and NRDC.
• Infrastructure development (30 Mega Food Parks)
• Income tax rebate for setting up of new agro-processing
industries
• Cumulative inflow of FDI into the food processing sector
• Growing number of fast food chains.
• The GOI is in the process of enacting a Food Safety and
Standards Bill
 Continued…
• A slow but steady transformation of the retail food
sector in cities.
• India has the second largest arable land in the
world. It has diverse agro-climatic zones.
• Competitive pricing also enables penetration in
the rural markets.
 OPPORTUNITIES
• GOI, in line with its Vision 2015 for the food processing
sector, in its 11th Five Year Plan proposes to give greater
thrust on infrastructure development.
• GOI envisages an investment of Rs. 1 trillion in the
industry over the next five years, mostly from private
sector and financial institution.
• Rising disposable income levels.
• Increasing urbanization and exposure to Western
culture.
 Continued…
•Growing health consciousness among the middle class.
•Growing consumerism.
•Changing age profile.
•Increasing availability of cheap consumer credit.
•India is in the middle of two big markets – the Middle
East and the Far East – and we can help French
companies reach out to these markets.
 WEAKNESSES
• Poor infrastructure still pose a serious challenge to
FDI.
• Heavily bureaucratic investment processes,
government inefficiency, and corruption
have also discouraged foreign investors.
• India is still not holding its laws high for protecting
copyright issues.
• Divergent food habits.
 Continued…
• High tariffs, dated food laws, and
unscientific sanitary and phyto sanitary
restrictions.
• Lack of grading and standards, poor
distribution channels, and onerous
government policies.
• Low penetration of processed food in
domestic markets.
• Out of the entire agricultural produce
of India only 1% is converted into value
added products.
• Lacks economies of scale, skilled
manpower.
 THREATS
• FDI and other routes of investments by
MNC’s pose a potential threat to a large
number of Indian players in the coming
years.
• Gradual decrease in no. of farmers
practicing agriculture.
• Religious sentiments for different foods.
Thank You