Located at Sanadar in Deodar taluka of the Vav-Tharad region in Banaskantha district, the upgraded facility can now process up to five tonnes of French fries every hour.

PM Modi shared a series of photographs from the plant on Instagram, offering a glimpse into its automated production lines and large-scale potato processing operations.

The inauguration was part of three major infrastructure and research projects launched for Banas Dairy.

Rs 51.65 crore expansion doubles processing capacity

The French fries plant underwent an expansion costing Rs 51.65 crore, with work beginning in April 2026.

The upgrade has increased its processing capacity from two tonnes to five tonnes per hour, significantly strengthening the facility's production capabilities.

The expansion is expected to benefit potato growers across Banaskantha by creating better access to organised procurement, food-processing infrastructure and value-added markets.

Banas Dairy's farm-to-fry model

Banas Dairy entered the French fries business under the Amul brand in 2019 and has gradually developed an integrated supply chain covering the entire production process, from seed development to finished products.

The cooperative's model includes laboratory-based plantlet development, seed cultivation, cold storage, direct procurement from farmers and retail distribution.

According to Banas Dairy, it is the only cooperative organisation in India operating such an end-to-end potato processing ecosystem.

The initiative focuses on providing disease-free planting material and certified seeds while procuring potatoes directly from farmers to ensure that the produce meets industrial processing requirements.

The dairy also follows a circular production model, converting organic processing waste into biogas and returning the residual material to agricultural fields.

Banaskantha emerges as a major potato-producing hub

Potato cultivation for industrial processing has expanded significantly in Banaskantha over the past 25 years.

The area under potato cultivation has grown from approximately 400 hectares to more than 61,000 hectares.

During 2024-25, the district produced around 1.87 million tonnes of potatoes, with average productivity estimated at approximately 30 tonnes per hectare.

The expansion of processing infrastructure is expected to strengthen the connection between local agricultural production and the food-processing industry.

How Banas Dairy is supporting potato farmers

One of the key features of Banas Dairy's initiative is its advance procurement pricing mechanism, which provides farmers with greater price certainty.

Under the system, procurement prices are fixed when seeds are distributed to farmers, helping them estimate their returns before the harvest.

The cooperative said it distributed an additional Rs 1.83 crore to potato farmers in 2023-24 through price-difference payments.

Its announced buyback prices were Rs 13 per unit in 2024-25 and Rs 14 per unit in 2025-26.

To improve storage and supply-chain efficiency, Banas Dairy established a 10,000-tonne cold storage facility in 2024.

It also signed a memorandum of understanding with Bharatiya Beej Sahakari Samiti Ltd in November 2025 to improve the availability of certified potato seeds.

India's potato product exports on the rise

The expansion comes amid growing demand for India's value-added potato products in international markets.

During 2025-26, India exported nearly 2.77 lakh tonnes of value-added potato products, worth approximately Rs 2,744.50 crore.

With its increased processing capacity, the Banas Dairy facility is expected to strengthen India's potato-processing ecosystem, expand export opportunities and provide a more reliable market for farmers.

PM Modi's 'Farm to Factory to Fries' message also highlights the government's broader push to connect agricultural production with modern food processing and global markets.