Andhra Pradesh Signs MoU with UAE Food Cluster to Boost Food Processing Investments and Exports
The Andhra Pradesh Economic Development Board (AP EDB) has signed a Memorandum of Understanding (MoU) with the UAE Food Cluster to strengthen investments, trade and exports in the state’s food processing sector.
The agreement was signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri, marking the implementation of commitments made during the World Economic Forum held in Davos earlier this year.
The partnership aims to promote large-scale exports of Andhra Pradesh’s horticultural produce to international markets while encouraging UAE-based companies to invest in food processing and allied industries across the state.
First Investment Announced
As part of the collaboration, Dubai-based Flour Masters International has committed to invest Rs 100 crore in establishing a food processing unit at Gangadhara Nellore in Chittoor district.
The proposed facility will manufacture food products for export to international markets. Flour Masters International currently exports its products to nearly 25 countries and plans to use the Andhra Pradesh unit as a major export hub.
Focus on Food Processing and Exports
A UAE delegation also held discussions with the Chief Minister regarding the establishment of a Food Cluster in Andhra Pradesh.
The collaboration is expected to support food processing units for horticultural crops including mangoes, bananas, cocoa and other produce, while encouraging value-added products, exports and international trade.
Chief Minister Highlights State’s Strengths
Chief Minister N. Chandrababu Naidu said it was encouraging that the UAE had acted on its investment commitments made during the Davos summit within six months.
He said the UAE Food Cluster would help position Andhra Pradesh as a destination for food processing investments, exports and international trade.
The Chief Minister noted that Andhra Pradesh is among India’s leading states in horticulture, aquaculture and information technology. He added that agriculture and horticulture together contribute nearly 30 per cent of the state’s Gross State Domestic Product (GSDP).
He also said the state government is developing Rayalaseema into a major horticulture hub through public and private investments worth Rs 1 lakh crore. In addition, the Indian School of Agriculture (ISA) is being established in partnership with Reliance.
According to the Chief Minister, Andhra Pradesh currently has more than 200 horticulture clusters, exporting products such as aquaculture produce, chillies, palm oil, cocoa, coffee and other agricultural commodities.
He further stated that Andhra Pradesh has institutionalised a “Speed of Doing Business” approach and that investor-friendly policies have helped the state attract nearly 25 per cent of the country’s investments. He also announced that another international airport in Andhra Pradesh will become operational from August 1, creating additional opportunities for trade and investment.
UAE Sees Opportunities in Andhra Pradesh
UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri said Andhra Pradesh offers significant opportunities for investment due to its river systems, including the Krishna and Godavari rivers.
He said the UAE is interested in expanding cooperation with Andhra Pradesh in agriculture and food processing as part of the growing India-UAE economic partnership.
The Minister noted that products such as shrimp, bananas and other horticultural produce from Andhra Pradesh have strong potential in international markets.
He also announced plans to establish a Food Park Cluster in the state with modern food processing facilities, cold chain infrastructure and logistics support.
Praising the state’s investor-friendly governance, he said industrial approvals are being granted within 21 days, improving the ease of doing business.
The Minister added that the UAE aims to strengthen exports of dairy products, poultry, seafood, pulses and other food products from Amaravati to international markets, including New York. He also said improved shipping connectivity from Krishnapatnam and Kakinada ports to the UAE would further enhance bilateral trade between Andhra Pradesh and the United Arab Emirates.
