A shortage of potatoes, higher prices and a reduction in the quality of tubers are eroding profit margins for large potato chip brands in India. Meanwhile, poor quality crops mean the potatoes cannot be stored for a long time.
Potato chips, also known in India as wafers, are one of the fastest growing categories amongst snack foods, however, there are concerns the problem could force smaller brands to leave the snack foods market temporarily.
The price of chipping potatoes have risen by 60 per cent recently and brands such as PepsiCo are making moves to improve storage conditions to ensure stocks last longer. The global firm is also teaching farmers to produce chipping potatoes to ensure a steady supply of reasonably-priced raw material.
India grows around 12 million tonnes of potatoes annually - approximately four per cent of the total world production.
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