Nepali Fries Go Global

Until recently, Nepal barely ppeared on the regional potato-processing map. Almost all French fries, ozen snacks sold in the country were imported, and large-scale processing seemed unlikely in an economy still dominated by smallholder  farmers. Over the last five fiscal years alone, Nepal imported French fries worth Rs 899 million.

That picture is changing. Potatoes have rapidly emerged as one of Nepal’s most important crops, and at the center of this transformation is First Choice Foods Pvt Ltd—a Butwal-based processor
that has built a nationwide supply chain connecting some 35,000 farmers across 26 districts. Established only a few years ago, the company now purchases 2,000–2,100 tons of potatoes annually.

In its first full year of commercial production, First Choice Foods claims to have replaced nearly 70% of Nepal’s French fry imports. Now, with the domestic foundation laid, the company is looking abroad.

From Butwal to the World First Choice Foods has already begun exporting French fries to the United States. Buoyed by that early breakthrough, the company is preparing to enter the UK, Australia, and Japan.

According to founder and executive chairperson Krishna Prasad Paudel, exports began just months after the company started production in mid-June. “Once the US market opened, it motivated us to expand  further,” Paudel told New Business Age. “We plan to export to the UK by November or
December, and to Japan and Australia by March.”

The company exports under its “Himalayan Crisps” brand from its processing plant in Shuddhodhan-4, Mainahiya of Rupandehi. Its focus is on premium-grade French fries and other potato-based products for both domestic and international markets.

Scary Numbers

Nepal’s potato economy highlights a sharp imbalance between agricultural capacity and dependence on imported processed foods. According to the Ministry of Agriculture and Livestock Development, potato farming is done in 198,256 hectares across the country, producing 3.41 million tons annually. Productivity, however, varies significantly. The national average stands at 17.2 tons per hectare, while areas supported by the Prime Minister Agriculture Modernization Project (PMAMP) achieve 23.28 tons per hectare. PMAMP alone accounts for nearly 43% of Nepal’s potato acreage and more than 46% of total production.

Potato is one of PMAMP’s 15 priority value chains. The project has rolled out 206 zones and 21 superzones, including two potato superzones in Kavre and Dadeldhura. Another 20 zones are active in districts including Okhaldhunga, Ramechhap, Kathmandu, Bhaktapur, Rasuwa, Dailekh, Baglung, Panchthar, Gorkha, Mustang, Jumla, and Rupandehi.

To minimize post-harvest losses, PMAMP has invested in storage facilities: three major cold stores in Dhanusha, Nuwakot and Dhading with a combined capacity of 12,500 tons; 64 cold rooms with a
capacity of 512 tons; and 68 rustic stores that hold 684 tons.

Despite these investments, Nepal’s processing capacity is very weak. In the last five fiscal years, Nepal imported 6.3 million kilograms of French fries worth Rs 889 million. Annual imports consistently run into the hundreds of millions—1.6 million kg worth Rs 200  million in 2021/22; 1.7 million kg worth Rs 269 million in 2022/23; 1.4 million kg worth Rs 226 million in 2023/24; and 1.1 million kg worth Rs 165 million in 2024/25. The first quarter of the current fiscal year alone saw imports of 260,712 kg worth Rs 37 million. Overall frozen  food imports now exceed Rs 10 billion annually, according  to government and customs records.

Paudel says they have adopted different measures to motivate potato farmers. “We try to reduce farmers’ risk by providing seeds, fertilizers and technical support. Farmers no longer fear that their harvest will go to waste or be sold at distress prices,” he said.

Founded about five years ago with an investment of Rs 2 billion, the company now produces nearly 2,000  kilograms of French fries per hour using modern technology.

The Potential

Globally, the French fries market is worth around $24 billion—an opportunity that suggests substantial room for Nepal to grow. For First Choice Foods, fries are only the entry point. The company has diversified into vegetable sticks, potato wedges, aloo tikki and other value-added products, all prepared with European processing machinery.

Early export success is reinforcing that strategy. Earlier this month, Nepal exported frozen French fries worth Rs 5.48 million to the United States through the Bhairahawa Customs Office—the country’s first such shipment. Two containers carrying 43,520 kilograms were sent to Genco LLC, a US-based firm. Another 40 tons are set to be exported within two months under the “Himalayan Crisp” and “Hamro Fries” brands.

With the US entry secured, First Choice Foods is now exploring markets in the UK, Australia, Japan, the UAE, Malaysia and Saudi Arabia. It hopes to launch exports to these markets within a year.

Paudel believes Nepal’s strong production base and expanding processing capacity provide them a competitive edge—if technology keeps pace. “Import volumes show the immense  potential,” he said. “Nepal failed to exploit the potential earlier because modern processing technology wasn’t available. We are the first in Nepal to run a frozen potato line using European machinery,” he added.

Despite growing domestic interest, expanding sales within the country is challenging. Curiosity surged after the news of export to the US, enabling the company to start supplying its products to some five-star hotels and KFC outlets. Still, Paudel says consumer loyalty to imported brands remains a hurdle. “Even though our products meet international standards, it is still difficult to expand into the domestic market,” he said. “We don’t want import restrictions; we only want the government to make lab testing stricter for food safety.”

Most of the company’s potatoes now come from Nepali farmers. It also imports small quantities from India. “From next year, we are targeting to use only Nepali potatoes,” Paudel said.

Increasing Production 

To strengthen its supply chain, First Choice Foods has launched a long-term strategy to boost domestic potato cultivation. It has mobilized 35,000 farmers across 26 districts, providing training on improved cultivation, mechanization and modern agronomic practices. The goal, according to Paudel, is to commercialize potato farming and ensure a stable supply. “We buy directly from farmers. When farmers are assured of fair prices and a reliable market, they partner with us willingly.”

In Tikapur of Kailali, the company has introduced mechanized farming. Paudel estimates that mechanization can reduce labor costs by up to 80%, making potato farming significantly more competitive. As part of this effort, the company has secured 22 bighas of land for mechanized cultivation and leased another 15 bighas from Tikapur Multiple Campus, where agriculture students now receive  hands-on training in seed production and modern planting techniques.

“We have started this as a campaign,” Paudel said, adding that training is already underway.

The company is also pursuing a broader regional vision. Paudel has held discussions with Sudurpaschim Province’s Chief Minister, the provincial planning commission’s vice-chairperson and other officials to propose developing Tikapur as a “potato hub.” The company has requested 400–500 bighas of land beginning next year. “If the land is provided, we will bring in the technology and machinery,  and we guarantee purchase of all potatoes at fair prices,” he said.

Much of the equipment is still imported from India. The company, however, plans to localize capacity as production expands. The broader ambition is to position Nepal as a competitive player in South Asia’s fast-growing processed potato market.

(This report was originally published in December 2025 issue of New Business Age magazine.)