Indian AI Startup Agrograde Revolutionizes Potato Supply Chain Efficiency as India Eyes Global Production Leadership

As India prepares to overtake China as the world's largest potato producer, a homegrown startup is addressing one of the sector's most persistent challenges: the substantial revenue losses resulting from poor grading and sorting practices.

Agrograde, an AI-powered agricultural technology Startup recognised by Bosch, Nvidia & BSE is transforming potato supply chain efficiency through innovative optical sorting solutions that have already gained the trust of major food processing units across the country.

The Scale of India's Potato Revolution

India's potato sector has reached unprecedented heights, with production touching a record 60.18 million tonnes in the 2024-25 crop year – a dramatic leap from the previous year's 31.21 lakh tonnes. According to scientists from the Peru-based International Potato Center, this trajectory positions India to become the world's top potato producer, surpassing China.

Gujarat alone recorded an impressive 48.59 lakh tonnes of potato production in the current season, with 25% of the national output now coming from the processed potato segment, as reported by The Hindu. This growth represents not just quantity, but a significant shift toward value-added products, such as French fries and chips.

Pile up of potatoes in the storage centre, Gujrat

The Hidden Cost Crisis

However, beneath these impressive production numbers lies a costly problem that has plagued Indian potato farmers for decades. Research by ICAR-Central Tuber Crops Research Institute (CTCRI) reveals a stark reality:one size graded potatoes command prices 5 to 6 times higher than the mix grades.

Farmers are losing 5–7% of their potential income because their produce is often misgraded or poorly sorted, according to the Agrograde leadership team. A premium potato that should sell for INR 600–700 (USD 6.81–7.94) per quintal can end up mixed with lower grades and sold for just INR 100–150 (USD 1.13–1.70), resulting in a devastating loss of INR 450–550 (USD 5.11–6.24) per quintal. These losses multiply across India's massive production volumes, translating to millions of rupees lost annually to spoilage, reduced prices, and rejected produce.

Technology Meets Traditional Agriculture

Agrograde's solution addresses this challenge head-on through AI vision technology that can process 1–10 metric tonnes per hour, with daily scalable capacity reaching 10–150 metric tonnes. Their multi-commodity optical sorter uses advanced algorithms to grade potatoes by size, shape, color, and surface defects with unprecedented accuracy. 

According to the Agrograde team, the system removes the subjectivity and inconsistency of manual sorting by detecting everything from cuts and sprouts to rot and greening, while also allowing for customizable grading rules that match specific buyer specifications. The technology’s gentle handling mechanism ensures potatoes aren’t damaged during the sorting process – a crucial factor given that mechanical damage can lead to further losses down the supply chain.

Agrograde AI potato grading machine in Ahmedabad

Proven Impact Across the Value Chain

The startup's solutions have already demonstrated quantifiable results across multiple stakeholders:

• For Farmers: Proper AI-driven grading raises realized value by up to 30% by ensuring premium tubers reach appropriate markets instead of being averaged down with mixed lots.
• For Processors: Automated removal of defective tubers reduces downstream rejections and storage decay, significantly cutting post-harvest losses.
• For the Industry: Digital quality reports and multi-grade outputs enable transparent negotiations and better buyer matching, whether for retail or processing applications.

Addressing Labor Challenges

Agrograde's technology also tackles another critical industry challenge identified in recent agricultural studies: labor shortages. The potato sector has been particularly affected by skilled labor scarcity, especially following the pandemic. Industry research highlights that potato harvesting is extremely labor-intensive, with tuber collection alone accounting for more than half the required manpower. Agrograde’s automated systems help bridge this gap while maintaining quality standards that manual processes often cannot achieve.

Portable Solutions for Every Scale

Understanding India's diverse agricultural landscape, Agrograde has developed both high-capacity systems for large operations and portable, power-efficient units suitable for individual farms and Farmer-Producer Organizations (FPOs). These smaller units can sort into 2-5 different grades and include inspection conveyor options.

Looking Forward

As India continues its march toward global potato production leadership, Agrograde's technology represents a crucial piece of the puzzle. By converting mixed-quality lots into clearly graded products, the company is helping unlock higher revenue per quintal while reducing waste across the entire supply chain.

With recognition from technology leaders like Bosch and NVIDIA, and growing adoption among major food processing units, Agrograde is positioned to play a significant role in India's agricultural transformation story.

Manual inspection of potatoes in Potato storage centre Gujrat

The startup's success reflects a broader trend of Indian agricultural innovation, where traditional farming practices are being enhanced by cutting-edge technology to create more efficient, profitable, and sustainable supply chains.