Assam potato sourcing is set for a significant expansion, with PepsiCo planning to increase procurement from the state to 30,000 tonnes in 2027 and target around 5,000 farmers. The move comes as the company strengthens its agricultural supply chain in Assam and builds on its investment in a major food manufacturing facility at Nalbari.
PepsiCo expands Assam potato sourcing network
The planned increase is expected to deepen the connection between Assam’s potato growers and PepsiCo’s food processing operations. The company has already started procuring potatoes from farmers in the state. In March 2024, an initial consignment of 50 metric tonnes was sent from Dibrugarh to one of PepsiCo’s manufacturing facilities outside Assam.
The latest target signals a larger role for Assam in PepsiCo’s potato supply chain. The company has previously said its Assam operations would create opportunities for more than 5,000 farmers through access to technology, improved seeds and affordable machinery.
The expansion is also expected to support the wider agricultural ecosystem, including storage, transportation and post-harvest handling.
Nalbari plant strengthens local demand
A major driver behind the expansion is PepsiCo’s food manufacturing facility in Nalbari. The company announced an investment of around Rs 778 crore for the greenfield plant, its first food manufacturing facility in the Northeast. The project was designed to strengthen local sourcing while supporting employment and economic activity in the region.
Earlier plans indicated that the Nalbari facility could eventually support procurement of up to 50,000 tonnes of potatoes annually from Assam. The company also estimated that its operations would improve the livelihoods of more than 5,000 farmers over the following years.
The 30,000-tonne target for 2027 therefore represents an important stage in the development of the supply network, even as the longer-term potential remains higher.
Focus on farmers and productivity
The expansion is taking place alongside efforts to improve the broader potato value chain. Assam Agriculture and Irrigation Minister Pijush Hazarika chaired a potato value chain development meeting in Nalbari on September 8, 2026. PepsiCo representatives participated in the discussions, while farmers shared concerns and expectations related to cultivation and marketing.
The discussions highlighted the importance of improving productivity, storage, processing and market linkages. These areas are particularly important for Assam, where farmers can face challenges from erratic rainfall, flooding, erosion and other agricultural risks.
For farmers, stronger links with an organised buyer could provide a more predictable market for processing-grade potatoes. PepsiCo has described its wider Indian potato sourcing model as one based on collaborative farming, with support that includes quality seeds, agronomic guidance, precision farming tools, weather information and post-harvest practices.
Assam potato sourcing could boost the value chain
The proposed expansion is not limited to farm-level procurement. Higher potato volumes could encourage investment in cold storage and other infrastructure needed to preserve quality after harvest.
PepsiCo had earlier estimated that its Assam operations would create demand for cold-storage capacity of around 60,000 tonnes over the following years. Better storage could help farmers reduce post-harvest losses and provide greater flexibility in moving produce to processing facilities.
The development also fits into PepsiCo’s broader agricultural strategy in India. The company works directly and indirectly with more than 27,000 farmers across 14 states and sources all potatoes for its Lay’s business in India from Indian farmers.
PepsiCo has also been expanding its focus on regenerative agriculture and improved farming practices in potato-growing regions, including Assam.
A wider opportunity for Assam farmers
The planned procurement increase could provide a stronger market opportunity for potato growers while helping Assam build a more organised processing-oriented agricultural sector. However, the success of the expansion will depend on productivity, crop quality, reliable infrastructure and effective coordination among farmers, government agencies and industry.
The September 8 meeting in Nalbari reflects this need for collaboration, with stakeholders discussing support throughout the production, storage, processing and marketing stages.
As PepsiCo moves towards its 2027 target, the expansion of Assam potato sourcing could become an important step in linking the state’s farmers with the organised food-processing industry. It could also strengthen Nalbari’s role as a regional manufacturing and agricultural hub, while creating new opportunities across Assam’s potato value chain.
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