The Potato Industry of Nepal Seeks Innovation and Growth Amid Challenges

On June 1, a potato conference was organized to mark the first International Day of Potato (IDP) in Kathmandu, Nepal. It was the first such event in the Himalayan nation.

Exactly, a week later on June 7, Nepal's first large-scale French fry company First Choice Foods Pvt. Ltd. commenced operations. With a daily production capacity of 30 tons, it aims to reduce country's dependence on imported French fries. In 2022, Nepal imported nearly 5700 tons of French fries. The total annual import of potato products, including French fries, was to the tune of NPR 15 billion (USD 112 million). These two events in quick succession signify the growing importance of potato in a land-locked country of 30 million people.

The IDP conference discussed challenges and ways to promote innovation in Nepal's potato industry. Nepal's agriculture minister, Jwala Kumari Sah, officials from the UN Food and Agriculture Organization (FAO), representatives of trade bodies, including the Nepal-India Chamber of Commerce and Industry (NICCI), and private companies and entrepreneurs participated in the event. 

NK Jha, CEO of Technico Agriscience Limited India, shared his experiences in technical collaboration in potato farming in India in a session titled "Neighbouring Country's Experience." 

Technico Agriscience Limited primarily grows and sells seed potatoes. It is known for its innovative Technituber seed potatoes, an early-generation seed potato variety. The company is a wholly-owned subsidiary of ITC Limited. Jha stated that recognizing the importance of potatoes, India established a research center, ICAR-Central Potato Research Institute (CPRI), formally established in 1949, to conduct research in potato and potato seeds. 

So far, this center has developed 375 varieties of potatoes. Lack of Quality Seeds, No Production of Processing Variety A recent report by the World Potato Congress identifies the lack of quality seed tubers and seed potato storage as important factors limiting the potato crop in the eastern highlands. The report says that before 2020, there existed no formal seed potato system. 

Nepal doesn't grow the processing variety of potatoes. The owner of First Choice Food, Krishna Paudel, whose potato processing plant in the Rupandehi district began operations in June 2024 revealed in a news report that importing seed potatoes of the processing variety was illegal when he began planning his potato processing plant in 2022.

Team members of the First Choice Foods Pvt. Ltd.

However, Paudel successfully imported 100 tons of seeds to process a variety of potatoes after the chief minister of Lumbini province, which borders India, took an interest in the matter and facilitated the entry of the seed potatoes. 

When tested on Nepali farms, the imported seed potatoes produced a yield of 18 quintals per quintal of seeds, while the local seed potatoes produced only 12-14 quintals of potatoes. The imported seed potatoes were tested in different parts of the country, and 600 quintals were expected to be produced in 2022. 

In a recent interaction, Bikram Poudel, Director, First Choice Foods, informed, "First Choice Foods produces premium potato-based products, including French fries, potato tikki, crinkle cuts, and wedges. Committed to sustainable practices and community development, the company empowers Nepali farmers through fair pricing and by prioritizing locally sourced ingredients. As a vertically integrated company, First Choice Foods oversees the entire agricultural value chain, from seed development and cultivation to cutting-edge food processing and nationwide distribution." 

The National Potato Research Program (NPRP) spearheads potato research in Nepal. A Swiss Development Cooperation (SDC)-funded national tissue culture laboratory and glasshouse was set up in 1989. The International Potato Center (CIP) provided NPRP access to germplasm containing important traits like high yield, resistance to late blight, and wart disease. 

The Agriculture Research Station (ARS), situated at 2,870 meters above sea level in the eastern hills of Nepal, ARS distributes the seeds produced by NPRP to farmers in the region. Nepal's Per Capita Potato Consumption Highest in Asia Nepal's annual potato yield is about 3.50 million tons, which caters to around 60% of local demand. 

The rest of the potatoes are imported, mainly from India, with whom it shares an 1850-km-long border with multiple entry points. British explorers introduced potatoes to Nepal in 1973. Today, potatoes are extremely popular in Nepal, boasting a per capita consumption of 75 kg, one of the highest in Asia. 

Nepal has a highly diverse geography, from Indo-Gangetic planes to high-altitude Himalayan mountains. However, potatoes are cultivated across different geographical regions in Nepal. Potato farming is a reliable source of sustenance for the people. 

In the high mountain regions, potatoes are a major food crop, and in the hills and planes, they are an important cash crop. The potato is emerging as a significant commercial crop among vegetables. A research paper mentions at least 42 varieties of potatoes grown in Nepal. 

These include Janak Dev, Bhotange, Cardinal, Namcheli, Arungold, C40, Khumal Rato, Lal Gulab, Rato Golo, Dalle Local Red, Kufri Sinduri, and Kanpure. 

A recent media report describes farmers in the Gandaki province who have earned handsome profits thanks to a bumper potato harvest. The provincial government promotes potato farming by offering several initiatives, including an NPR 2 (USD 0.015) per kg cash incentive. 

Agriculture Knowledge Centers, a network of government institutions that provide information, training, and expert advice to farmers, offer up to a 75% subsidy on potato seeds. Nepal imported potato chips worth NPR 12 billion (USD 9 Million) in 2022. 

Major potato chip brands in Nepal are Lay's, Cornitos, Raj Potato Chips, and Nepal Foods Nepali Potato Chips. In 2022, First Choice Food Pvt Ltd established a potato processing plant in the Humla district of Karnali province. The plant's owner plans to produce French fries, chips, starch, and potato-based ready-to-eat traditional snacks such as samosa and potato parathas.