As the Union Budget 2026 is released, India's potato sector is calling for defined and time-bound policy measures aimed at strengthening farm incomes, expanding processing capacity, and supporting export development. Industry stakeholders indicate that current support measures are limited and that structural changes are required to address supply chain inefficiencies.
Potatoes play a role in food supply, farm income, and the growth of processed food segments. Sector representatives have asked that Budget 2026 focus on reducing cold storage losses, limiting post-harvest wastage, and supporting the development of value-added potato products for domestic and export markets.
One of the main policy requests relates to collective farming. The sector is seeking fiscal incentives for collective structures, particularly for farmers producing potatoes for processing. Organised models similar to Farmer-Producer Organizations are viewed as a way to improve scale, manage quality requirements, and provide more predictable returns for growers supplying processors.
Cold storage, grading, and logistics remain key challenges. The sector is asking for capital subsidies and interest support to encourage investment in modern and energy-efficient storage facilities. Improved infrastructure is expected to lower storage losses and improve product consistency. Additional support for logistics would also help reduce transport costs from production areas to processing plants and export points. Stakeholders have also requested that potato processing be included under the Production Linked Incentive framework to support capacity expansion.
Digital technologies are another focus area. Potato cultivation is sensitive to heat and water stress, increasing exposure to climate variability. Some companies are working with breeders to develop early-maturity and climate-tolerant varieties, while also introducing IoT-based monitoring and advisory systems. The sector sees wider use of digital tools such as precision farming, traceability, and real-time crop advisories as necessary to improve production efficiency and meet market requirements.
Export development is also part of the industry's proposals. Stakeholders have highlighted the need for export-ready logistics, faster phytosanitary processes, and alignment of traceability systems within trade agreements. Support for export promotion activities, including government-led trade outreach in Southeast Asia, the Middle East, and neighbouring regions, has been suggested to improve market access.
Research and development remains a further area of attention. The sector is seeking increased investment through public–private collaboration, focusing on high-yielding, processing-grade, and climate-resilient potato varieties adapted to local conditions.
Industry representatives state that Budget 2026 presents an opportunity to shift the potato sector toward a value-added and export-oriented model through coordinated investment in infrastructure, technology, and market development.
Source: potatoPro
