Himachal plans to set up potato processing plant bordering Punjab: CM Sukhu

Shimla, Dec 28 With potatoes contributing around 20 per cent of the state’s vegetable cultivation, Himachal Pradesh Chief Minister Sukhvinder Sukhu on Saturday said the government is planning to establish a potato processing plant in Una district with an outlay of Rs 20 crore, that will also help growers of Punjab, another prominent grower state.

The plant, with a minimum processing capacity of 500 kg per hour, will primarily focus on producing potato flakes and the Agricultural Department has been directed to formulate the detailed project report for the facility.

Agriculture accounts for 14 per cent of Gross State Domestic Product, with potatoes being a key crop. Potato yields approximately 238,317 metric tons sown 16,960 hectare.

The establishment of the potato processing plant will not only help ensure better remunerative prices for farmers but also boost the local economy by creating employment opportunities both in the factory and agricultural sector, an official statement quoting the Chief Minister said.

Sukhu said, “By processing potatoes into value-added products like flakes, the plant will help stabilize the potato market and reduce the vulnerability of farmers to price fluctuations in the fresh potato market. Potato flakes are made by cooking, mashing, and drying the potatoes to create flat, dehydrated chunks, which are then packaged for sale.”

He said the potato processing industry is an industrialized, technologically advanced, and market-driven sector. He said Una district, with its production of approximately 54,200 metric tons of potatoes from 3,400 hectares across both seasons (autumn and spring), is well-positioned to support such a plant.

Additionally, the neighbouring state, Punjab, also produces a significant quantity of potatoes, ensuring a steady supply of raw material for the processing industry.

He said one of the key advantages of potato cultivation in Himachal Pradesh is the ability to harvest potatoes during the rabi season, which typically occurs in March. However, due to market conditions, farmers often face distressing sales during this period.

The proposed processing unit will offer farmers an opportunity to sell their potatoes at better prices, preventing price fluctuations and ensuring a year-round demand for potatoes.

Sukhu said the state’s climatic conditions are ideal for producing high-quality, disease-free seed potatoes, which are highly valued across India. He said the demand for processed potato products, such as flakes, is rapidly growing in India, driven by changing consumer preferences and the expanding processing industry.

Besides Una district, the table potato is also cultivated in Bilaspur, Kangra, Mandi, Shimla, Solan and Kullu districts.

The Lahaul Valley in Lahaul-Spiti district is known for producing virus-free seed potatoes that mainly find a market for plantation. The potato cultivation in Lahaul goes back to 1854 when missionary A.W. Hide from Germany established a farm near Keylong, the district headquarters town.

The seed potatoes are in great demand in states like West Bengal, Bihar, and Karnataka.

Vegetable production in the state is generating revenue of Rs 3,500-Rs 4,000 crore annually and has emerged as an alternate economic activity in the agriculture sector.

The returns on off-season vegetable cultivation are very high compared to traditional food crops, say experts.