POTATO FLOUR

EXPORT POTENTIAL ANALYSISPradeep kumar09020242026

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 -ManufacturingProcurement 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:

1 dollar =46 Rs

Description Price (USD) Price (Rs)

Equipment's cost 747,500 3,43,85,000

Capacity:

Hourly output 500kg/hr

Daily output (18 hour operation)

9 tonnes

6 month output (180 days) 1,620 tonnes

12 month output (360 days) 3,240 tonnes

PLANT AND EQUIPMENTS:

• European Technology: Machinery & Equipment's:

• 1 euro= 59.5

Description Price (Euro) Price (Rs)

Equipment's cost 2,677,950 159338025

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

Daily output (18 hour operation) 21.6 tonnes

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

  CostProduction variable cost  Seed and seed treatment 9726Fertilizer and manures 5043Plant protection measures 888Irrigation charges 624Machinery charges 2908Hired labour 2764Interest on working capital 1193Sub-Total A 23147Marketing cost  Package expenses 2206Transportation expenses to market 1474Sub- Total B 3680Gross Value Product 57015Return over Production Variable Cost (Gross Return – Production Variable cost A)

33868

Return over Total Cost (Return over Production variable cost – Marketing Cost B)

30188

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 noSiddhartha Starch Pune +9102025651425Potato King Foods Limited Kolkata +(91)-(33)-24649271Shree 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

• ExportRetail: - 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