AP Signs MoU with UAE Food Cluster to boost food processing investments
The Andhra Pradesh Economic Development Board (AP EDB) signed a Memorandum of Understanding (MoU) with the UAE Food Cluster to promote investments, trade and exports in Andhra Pradesh’s food processing sector.T he MoU was signed today in the presence of Chief Minister N Chandrababu Naidu and UAE Minister of Economy and Tourism, Abdulla Bin Touq Al Marri materialising key commitment made during this year’s World Economic Forum in Davos.
The agreement aims to facilitate large-scale exports of Andhra Pradesh’s horticultural produce to international markets while encouraging UAE-based companies to invest in food processing and related industries in the state.
A UAE delegation also held discussions with the Chief Minister regarding the establishment of the Food Cluster in Andhra Pradesh. The collaboration will support the establishment of food processing units for horticultural products such as mangoes, bananas, cocoa and other crops, besides promoting value-added products, exports and international trade.
As the first investment under this partnership, Dubai-based Flour Masters International has committed to invest Rs 100 crore in setting up a food processing unit at Gangadhara Nellore in Chittoor district. The facility will manufacture world-class food products for export to global markets. Flour Masters International currently exports its products to nearly 25 countries and plans to use its Andhra Pradesh facility as a major export hub.
Chief Minister Chandrababu Naidu said it was encouraging that the UAE, which had shown interest in investing in Andhra Pradesh during the Davos summit, had moved swiftly to implement its commitments within six months.He noted that the UAE Food Cluster would position Andhra Pradesh as a major destination for food processing investments, exports and international trade.The Chief Minister highlighted that Andhra Pradesh ranks among India’s leading states in horticulture, aquaculture and information technology. Owing to its diverse agro-climatic conditions, the state produces a wide variety of horticultural crops throughout the year. Agriculture and horticulture together contribute nearly 30 percent of the state’s Gross State Domestic Product (GSDP), he said.He further stated that the government is transforming Rayalaseema into a major horticulture hub through public and private investments worth Rs 1 lakh crore. He also announced that the Indian School of Agriculture (ISA) is being established in partnership with Reliance.
The Chief Minister informed the UAE delegation that Andhra Pradesh currently has over 200 horticulture clusters, exporting products such as aquaculture produce, chillies, palm oil, cocoa, coffee and several other agricultural commodities.
The Chief Minister said Andhra Pradesh has institutionalized the “Speed of Doing Business” approach and that progressive policies have helped attract nearly 25 percent of the country’s investments. With its ports, railways and road connectivity, the state has emerged as a major logistics hub.The Chief Minister also announced that another international airport in Andhra Pradesh would become operational from August 1, creating additional opportunities for trade and investment.Inviting UAE businesses to explore the state’s vast investment potential, he urged them to seize opportunities at “quantum speed.”
UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri said Andhra Pradesh offers exceptional opportunities, thanks to its rich river systems such as the Krishna and Godavari.
He praised Chief Minister Chandrababu Naidu as a visionary leader transforming Andhra Pradesh into a globally competitive investment destination.As part of the growing India-UAE economic partnership, the UAE is keen to leverage Andhra Pradesh’s strengths in agriculture and food processing. He noted that products such as shrimp, bananas and other horticultural produce from Andhra Pradesh hold significant potential in international trade.The Minister announced plans to establish a Food Park Cluster in the state, supported by modern food processing facilities, cold chain infrastructure, and related logistics.He also commended the Andhra Pradesh Government for its investor-friendly governance, noting that industrial approvals are being granted within 21 days, significantly improving the ease of doing business.He said the UAE aims to strengthen exports of dairy products, poultry, seafood, pulses, and other food products from Amaravati to global markets, including New York.The Minister added that shipping connectivity from Krishnapatnam and Kakinada ports to the UAE would further boost bilateral trade and strengthen economic ties between Andhra Pradesh and the United Arab Emirates.